Do Siblings Free-Ride in 'being There' for Parents?

Publisher:
Econometric Society
Publication Type:
Journal Article
Citation:
Quantitative Economics, 2017, 8 (1), pp. 277 - 316
Issue Date:
2017
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There is a potential free-rider problem when several siblings consider future provision of care for their elderly parents. Siblings can commit to not providing long-term support by living far away. If location decisions are made by birth order, older siblings may enjoy a Örstmover advantage. We study siblingsílocation decisions relative to their parents by estimating a sequential participation game for US data. We Önd: (1) limited strategic behavior: in two-child families, more than 92% of children have a dominant strategy; and (2) a non-negligible public good problem: in families with multiple children, 18.3% more parents would have had at least one child living nearby had location decisions been made cooperatively
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