NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Joachim De Weerdt

IOB, University of Antwerp
Stadscampus
Lange Sint - Annastraat 7 S.S.213 20
and LICOS, University of Leuven

E-Mail: Joachim.DeWeerdt@uantwerpen.be
Institutional Affiliation: IOB, University of Antwerp and LICOS, University of Leuven

NBER Working Papers and Publications

October 2015Asymmetry of Information within Family Networks
with Garance Genicot, Alice Mesnard: w21685
This paper studies asymmetry of information and transfers within a unique data set of 712 extended family networks from Tanzania. Using cross-reports on asset holdings, we construct measures of misperception of income among all pairs of households belonging to the same network. We show that there is significant asymmetry of information and no evidence of major systematic over-evaluation or under-evaluation of income in our data, although there is a slight over-evaluation on the part of migrants regarding non-migrants. We develop a static model of asymmetric information that contrasts altruism, pressure and exchange as motives to transfer. The model makes predictions about the correlations between misperceptions and transfers under these competing explanations. Testing these predictions in ...

Published: Joachim De Weerdt & Garance Genicot & Alice Mesnard, 2019. "Asymmetry of Information within Family Networks," Journal of Human Resources, vol 54(1), pages 225-254. citation courtesy of

 
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