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Intergenerational Transfers: An Integrative Approach

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  • MORDECHAI E. SCHWARZ
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    Abstract

    The empirical literature was unable to conclude whether intergenerational transfers are motivated mainly by altruistic or strategic motivations. I suggest that both may be plausible, namely that people are neither pure altruists who derive utility simply from being good to others, nor pure egoists who consider only strategic selfish considerations, but are actually driven by a combination of incentives. I show that assuming a combination of motives changes, sometimes dramatically, the results obtained in the traditional models and resolves the puzzle concerning the empirical results. Copyright 2006 Blackwell Publishing Inc..

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    Bibliographic Info

    Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

    Volume (Year): 8 (2006)
    Issue (Month): 1 (01)
    Pages: 61-93

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    Handle: RePEc:bla:jpbect:v:8:y:2006:i:1:p:61-93

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    Cited by:
    1. Marta Melguizo Garde, 2007. "La motivación de las transmisiones lucrativas entre generaciones de una familia: modelos teóricos y evidencia empírica," Hacienda Pública Española, IEF, IEF, vol. 181(2), pages 81-118, June.
    2. Paula C. Albuquerque, 2014. "The Interaction of Private Intergenerational Transfers Types," Working Papers Department of Economics, ISEG - School of Economics and Management, Department of Economics, University of Lisbon 2014/03, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.

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