Seminarios

Presenta: Francisco Parro (Ph.D. in Economics, University of Chicago; Assistant Professor, Universidad Adolfo Ibañez)

Lugar y hora: 26 de Junio, 12:30 pm, Sala P-301, Edificio Placa (Diagonal Paraguay 257)

Abstract: This paper studies the giving behavior of self-interested individuals motivated by productive relations in a network. In our theory the giving network is not a mirror image of the production network. We show that voluntary giving can arise among agents who do not maintain any direct and pre-existing productive relationship. We also provide conditions under which some agents never receive voluntary gifts. The model endogenously determines who are the givers and the receivers of transfers. In addition, we illustrate how giving can be a decentralized and effective alternative to increase the resilience of a productive network to negative shocks.