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My mom passed away recently, and we’re planning a memorial service in her home city, where none of us three offspring lives. There are lots of expenses: the service; food afterwards; planes and hotels for all of the children, grandchildren and any great-grandchildren who can come.
Financing this event illustrates general issues in the division between the public and private sectors. I view Mom’s estate as the equivalent of the public sector (since all offspring share equally). So my idea is to have the estate pay for the public good — the service — and also the food, etc. at the service. Each participant is responsible for his/her own travel, hotel, etc. — private financing My wife pointed out that some of the siblings can’t afford the travel/hotel as well as others can, and could be subsidized by the “public sector.” I responded that we shouldn’t create incentives to travel or stay lavishly, nor to have huge numbers of relatives paid to attend. A classic public-private, equity-efficiency clash.
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I’m sorry for your loss, but damn man, that’s cold.
Maybe what your mom would’ve wanted is more important than an equity-efficiency clash? Or perhaps allowing siblings to attend their mother’s funeral is more important than having “too many” people’s attendence funded? You’d be an awfully strange sibling to have.
Condolences, Daniel.
Perhaps a percentage match, rather than a flat subsidy? That might provide some relief to those in need without distorting incentives.
Ala the Earned Income Credit?
No economic comment but I’m sorry about your Mom and hope the service goes well
I disagree with your categorizing: the entire event is a public good. Attendance, meaning travel and stay, is part of the public event. You can handle subsidy issues by paying to a minimum – like by noting a couple of hotel choices – and say the estate will pay for that level and anything beyond is up to you. Air fare is less controllable but you can obviously exclude 1st class, etc. and maybe require non-refundable tickets. I’d say that better moves the private part to the private participants and yet allows for the public good.
And I meant to say, sorry about your mother.
I was 12 when my father died. I lived across the country, and no one helped my mom get me a ticket out there for the funeral even though I was close to all of them, and they had plenty money to help. So his only child wasn’t even at his funeral. I never forgave his side of the family. I wasn’t rich enough to mourn my father. Horrible priorities.