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Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data

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Author Info
Altonji, Joseph G
Hayashi, Fumio
Kotlikoff, Laurence J

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Abstract

This paper uses Panel Study of Income Dynamics data on parents and their adult children to test the standard altruism model. This model predicts that, within the extended family, the distribution of consumption is independent of the distribution of resources. The authors' findings strongly reject this prediction. Copyright 1992 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 82 (1992)
Issue (Month): 5 (December)
Pages: 1177-98
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Handle: RePEc:aea:aecrev:v:82:y:1992:i:5:p:1177-98

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lindbeck, Assar & Weibull, Jorgen W, 1988. "Altruism and Time Consistency: The Economics of Fait Accompli," Journal of Political Economy, University of Chicago Press, vol. 96(6), pages 1165-82, December. [Downloadable!] (restricted)
  2. John H. Cochrane, 1992. "A Test of Consumption Insurance," NBER Working Papers 2642, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Browning, Martin & Deaton, Angus & Irish, Margaret, 1985. "A Profitable Approach to Labor Supply and Commodity Demands over the Life-Cycle," Econometrica, Econometric Society, vol. 53(3), pages 503-43, May. [Downloadable!] (restricted)
  4. Neil Bruce & Michael Waldman, 1988. "Transfers in Kind: Why They Can Be Efficient and Non-Paternalistic," UCLA Economics Working Papers 532, UCLA Department of Economics. [Downloadable!]
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  5. Bruce, Neil & Waldman, Michael, 1990. "The Rotten-Kid Theorem Meets the Samaritan's Dilemma," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 155-65, February. [Downloadable!] (restricted)
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  6. Andrew B. Abel & Laurence J. Kotlikoff, 1994. "Does the Consumption of Different Age Groups Move Together? A New Nonparametric Test of Intergenerational Altruism," NBER Working Papers 2490, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Bernheim, B Douglas & Bagwell, Kyle, 1988. "Is Everything Neutral?," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 308-38, April. [Downloadable!] (restricted)
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  8. Fumio Hayashi, 1985. "Tests for Liquidity Constraints: A Critical Survey," NBER Working Papers 1720, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Townsend, R.M., 1991. "Risk and Insurance in Village India," University of Chicago - Economics Research Center 91-3, Chicago - Economics Research Center.
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  10. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec.. [Downloadable!] (restricted)
  11. David Altig & Steve J. Davis, 1989. "Altruism, borrowing constraints, and social security," Working Paper 8918, Federal Reserve Bank of Cleveland. [Downloadable!]
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  12. Laurence J. Kotlikoff & Assaf Razin & Robert W. Rosenthal, 1991. "A Strategic Altruism Model In Which Ricardian Equivalence Does Not Hold," NBER Working Papers 2699, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. Blundell, Richard William, 1987. "Econometric Approaches to the Specification of Life-Cycle Labour Supply and Commodity Demand Behaviour," CEPR Discussion Papers 150, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  14. B. Douglas Bernheim, 1987. "Dissaving After Retirement: Testing the Pure Life Cycle Hypothesis," NBER Working Papers 1409, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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