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Giving to family versus giving to the community within and across generations

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  • Partha Deb
  • Cagla Okten
  • Una Osili

    ()

Abstract

In this paper, we examine relationship between giving to family, and community institutions, within and across generations, a previously unexplored subject. We investigate the relationship between these two types of transfer networks using new data from the Indonesian Family Life Surveys (IFLS). From our results, financial transfers to family members are positively correlated with giving to community organizations for both parent or origin households and adult split-offs living outside their households of origin. We also study the role of the family in shaping transfer behavior, and find that transfer behavior of adults living outside of their household of origin is significantly associated with parent or origin household transfer behavior. Our estimation strategy is based on the method of maximum simulated likelihood (MSL), which allows us to account for the correlation in error terms within and across generations.

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Bibliographic Info

Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 23 (2010)
Issue (Month): 3 (June)
Pages: 963-987

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Handle: RePEc:spr:jopoec:v:23:y:2010:i:3:p:963-987

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Related research

Keywords: Family transfers; Community institutions; Role model effect; O12; J13; D10;

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References

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  2. Alberto Alesina & Eliana La Ferrara, 2000. "The Determinants of Trust," NBER Working Papers 7621, National Bureau of Economic Research, Inc.
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  12. Cameron, Lisa A. & Cobb-Clark, Deborah A., 2001. "Old-Age Support in Developing Countries: Labor Supply, Intergenerational Transfers and Living Arrangements," IZA Discussion Papers 289, Institute for the Study of Labor (IZA).
  13. Donald Cox & Oded Stark, 1996. "Intergenerational Transfers and the Demonstration Effect," Boston College Working Papers in Economics 329., Boston College Department of Economics.
  14. Joseph G. Altonji & Fumio Hayashi & Laurence Kotlikoff, . "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," IPR working papers 95-22, Institute for Policy Resarch at Northwestern University.
  15. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, April.
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  17. Gerald E. Auten & Holger Sieg & Charles T. Clotfelter, 2002. "Charitable Giving, Income, and Taxes: An Analysis of Panel Data," American Economic Review, American Economic Association, vol. 92(1), pages 371-382, March.
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Cited by:
  1. Wilhelm, Mark Ottoni & Brown, Eleanor & Rooney, Patrick M. & Steinberg, Richard, 2008. "The intergenerational transmission of generosity," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2146-2156, October.

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