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Shaping intergenerational relationships: the demonstration effect

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  • Jellal, Mohamed
  • Wolff, Francois-Charles

Abstract

According to the demonstration effect theory, parents make intergenerational transfers to their elders in order to elicit a symmetric future behavior from their children. In this paper we show that upstream transfers are expected to increase with low returns from alternative financial assets and with the donor’s life expectancy. The latter effect creates a greater incentive for daughters to care for parents.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 68 (2000)
Issue (Month): 3 (September)
Pages: 255-261

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Handle: RePEc:eee:ecolet:v:68:y:2000:i:3:p:255-261

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References

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  1. Cigno, Alessandro, 1993. "Intergenerational transfers without altruism : Family, market and state," European Journal of Political Economy, Elsevier, vol. 9(4), pages 505-518, November.
  2. Anne Laferrere, 1997. "Intergenerational Transmission Models :A Survey," Working Papers 97-23, Centre de Recherche en Economie et Statistique.
  3. Theodore C. Bergstrom, 1995. "Economics in a Family Way," Labor and Demography 9507002, EconWPA, revised 06 Feb 1996.
  4. Cox, Donald, 1990. "Intergenerational Transfers and Liquidity Constraints," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 187-217, February.
  5. Donald Cox & Oded Stark, 1996. "Intergenerational Transfers and the Demonstration Effect," Boston College Working Papers in Economics 329., Boston College Department of Economics.
  6. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
  7. Francois-Charles Wolff, 2001. "Private intergenerational contact in France and the demonstration effect," Applied Economics, Taylor & Francis Journals, vol. 33(2), pages 143-153.
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Citations

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Cited by:
  1. Jellal, Mohamed & Bouzahzah, Mohamed, 2012. "Social security family finance and demography," MPRA Paper 38793, University Library of Munich, Germany.
  2. Ken Yamada, 2006. "Intra-family transfers in Japan: intergenerational co-residence, distance, and contact," Applied Economics, Taylor & Francis Journals, vol. 38(16), pages 1839-1861.
  3. Partha Deb & Cagla Okten & Una Okonkwo Osili, 2002. "Giving to Family versus Giving to the Community Within and Across Generations," Economics Working Paper Archive at Hunter College 02/6, Hunter College Department of Economics.
  4. Gimenez-Nadal, Jose Ignacio & Marcén, Miriam & Molina, José Alberto, 2007. "How Does the Presence of Children Affect Dependent Care? A Psycho-Economic Approach," IZA Discussion Papers 2726, Institute for the Study of Labor (IZA).
  5. Mohamed JELLAL & François-Charles WOLFF, 2005. "Dynamique des transferts intergénérationnels et effet de démonstration," Annales d'Economie et de Statistique, ENSAE, issue 77, pages 81-107.
  6. Mohamed Jellal & Francois-Charles Wolff, 2002. "Insecure old-age security," Oxford Economic Papers, Oxford University Press, vol. 54(4), pages 636-648, October.
  7. Jellal, Mohamed & wolff, François charles, 2002. "Altruistic bequests with inherited tastes," MPRA Paper 38447, University Library of Munich, Germany.
  8. Jellal, Mohamed & wolff, François charles, 2003. "Solidarités familiales par la démonstration
    [Familial solidariies and the demonstration effect]
    ," MPRA Paper 38438, University Library of Munich, Germany.
  9. Jellal, Mohamed & Wolff, Francois-Charles, 2002. "Cultural evolutionary altruism: theory and evidence," European Journal of Political Economy, Elsevier, vol. 18(2), pages 241-262, June.
  10. Mitrut, Andreea & Wolff, François-Charles, 2009. "A causal test of the demonstration effect theory," Economics Letters, Elsevier, vol. 103(1), pages 52-54, April.

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