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A MODEL OF “FAMILY FAIRNESS” AND ITS IMPLICATIONS FOR DEBT NEUTRALITY
Author(s) -
Pemberton James
Publication year - 1996
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1996.tb01376.x
Subject(s) - neutrality , economics , debt , utilitarianism , microeconomics , econometrics , macroeconomics , law , political science
Evidence suggests that a signcant proportion, though by no means all, of bequests is equally divided among the beneficiaries. This is inconsistent with standard models of bequests, which predict that equal division should occur only by chance. This paper proposes a modified model incorporating “family fairness” as well as utilitarianism as an influence on behavior. Various implications for debt neutrality are analyzed.