Journal
JOURNAL OF HUMAN RESOURCES
Volume 54, Issue 1, Pages 225-254Publisher
UNIV WISCONSIN PRESS
DOI: 10.3368/jhr.54.1.0616.8023R1
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Funding
- Rockwool Foundation
- World Bank
- William and Flora Hewlett Foundation
- grant Health Risks and Migration by the AFD
- IRD
- AIRD
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This paper studies asymmetry of information and transfers within 712 extended family networks from Tanzania. Using cross-reports on asset holdings, we construct measures of misperception of living standards among households within the same network. We contrast altruism, pressure, exchange, and risk sharing as motives to transfer in simple models with asymmetric information. Testing the model predictions in the data uncovers the active role played by recipients of transfers. Our findings suggest that recipients set the terms of the transfers, either by exerting pressure on donors or because they hold substantial bargaining power in their exchange relationships.
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