Altruism and Climate

58 Pages Posted: 17 Jul 2006

See all articles by Ingela Alger

Ingela Alger

University of Toulouse 1 - Toulouse School of Economics (TSE); CNRS UMR 5314 TSE-R; Institute for Advanced Study in Toulouse

Jorgen W. Weibull

Stockholm School of Economics - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: July 10, 2006

Abstract

Recognizing that individualism, or weak family ties, may be favorable to economic development, we ask how family ties interact with climate to determine individual behavior and whether there is reason to believe that the strength of family ties evolves differently in different climates. For this purpose, we develop a simple model of the interaction between two individuals who are more or less altruistic towards each other. Each individual exerts effort to produce a consumption good under uncertainty. Outputs are observed and each individual chooses how much, if any, of his or her output to share with the other. We analyze how the equilibrium outcome depends on altruism and climate for ex ante identical individuals. We also consider (a) coerced altruism, that is, situations where a social norm dictates how output be shared, (b) the effects of insurance markets, and (c) the role of institutional quality. The evolutionary robustness of altruism is analyzed and we study how this depends on climate.

Keywords: altruism, incentives, insurance

JEL Classification: D13, D64

Suggested Citation

Alger, Ingela and Weibull, Jorgen W., Altruism and Climate (July 10, 2006). Available at SSRN: https://ssrn.com/abstract=916507 or http://dx.doi.org/10.2139/ssrn.916507

Ingela Alger (Contact Author)

University of Toulouse 1 - Toulouse School of Economics (TSE) ( email )

Place Anatole-France
Toulouse Cedex, F-31042
France

CNRS UMR 5314 TSE-R ( email )

France

Institute for Advanced Study in Toulouse ( email )

31015 Toulouse, Cedex 6
France

Jorgen W. Weibull

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
79
Abstract Views
951
Rank
566,997
PlumX Metrics