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Intergenerational Transfers and the Demonstration Effect

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Author Info
Donald Cox () (Boston College)
Oded Stark (Harvard University)

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Abstract

How can parents secure old-age support in the form of care, attention or financial transfers from their children? We explore the enforcement of implicit intergenerational agreements from a fresh angle by studying the possibility that the child's conduct is conditioned by the parents' example. Parents can take advantage of this learning potential by making transfers to their own parents when children are present to observe such transfers. Parents who desire old-age support have an incentive to behave appropriately. The idea that the parents' behavior is aimed at inculcating desirable behavior in their children generates testable hypotheses about transfers that we investigate using household survey microdata. The demonstration-effect approach also has implications for such diverse phenomena as population aging and the labor market participation of women.

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Publisher Info
Paper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 329..

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Length: 34 pages
Date of creation: 01 Jan 1996
Date of revision:
Handle: RePEc:boc:bocoec:329

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Related research
Keywords: Demonstration effect; private transfers; altruism; elderly support; fertility; inculcation; family values;

Find related papers by JEL classification:
D10 - Microeconomics - - Household Behavior - - - General
D64 - Microeconomics - - Welfare Economics - - - Altruism
J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped
J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

References listed on IDEAS
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.:

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  3. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June. [Downloadable!] (restricted)
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    Other versions:
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    Other versions:
  8. Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 99-117, Fall. [Downloadable!] (restricted)
  9. Ted Bergstrom & Oded Stark, 1993. "How Altruism Can Prevail in an Evolutionary Environment," University of California at Santa Barbara, Economics Working Paper Series 1993B, Department of Economics, UC Santa Barbara. [Downloadable!]
    Other versions:
  10. Schultz, T.P., 1990. "Testing The Neoclassical Model Of Family Labor Supply And Fertility," Papers 601, Yale - Economic Growth Center.
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    Other versions:
  12. Bernheim, B Douglas & Stark, Oded, 1988. "Altruism within the Family Reconsidered: Do Nice Guys Finish Last?," American Economic Review, American Economic Association, vol. 78(5), pages 1034-45, December. [Downloadable!] (restricted)
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    Other versions:
  17. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-18, October. [Downloadable!] (restricted)
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    Other versions:
Full references

Cited by:
(explanations, 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. Donald Cox & Zekeriya Eser & Emmanuel Jimenez, 1996. "Motives for Private Transfers over the Life Cycle: An Analytical Framework and Evidence for Peru," Boston College Working Papers in Economics 327., Boston College Department of Economics. [Downloadable!]
    Other versions:
  2. Carmen Li & Javier Olivera, 2005. "Participation in the Peruvian reformed pension system," Economics Discussion Papers 592, University of Essex, Department of Economics. [Downloadable!]
  3. Christian Zimmermann, 1999. "Is Menopause Optimal?," Cahiers de recherche CREFE / CREFE Working Papers 99, CREFE, Université du Québec à Montréal. [Downloadable!]
    Other versions:
  4. Luc Arrondel & André Masson, 2002. "Altruism, Exchange or Indirect Reciprocity: What do the Data on Family Transfers Show?," DELTA Working Papers 2002-18, DELTA (Ecole normale supérieure). [Downloadable!]
    Other versions:
  5. Theodore C. Bergstrom, 1995. "Economics in a Family Way," Labor and Demography 9507002, EconWPA, revised 06 Feb 1996. [Downloadable!]
    Other versions:
  6. Partha Deb & Cagla Okten & Una Okonkwo Osili, 2002. "Giving to Family versus Giving to the Community Within and Across Generations," Hunter College Department of Economics Working Papers 02/6, Hunter College: Department of Economics. [Downloadable!]
  7. Ted Bergstrom & Oded Stark, . "How Altruism Can Prevail in an Evolutionary Environment," Papers _024, University of Michigan, Department of Economics. [Downloadable!]
    Other versions:
  8. Donald Cox & Beth J. Soldo, 2004. "Motivation for Money and Care that Adult Children Provide for Parents: Evidence from "Point-Blank" Survey Questions," Working Papers, Center for Retirement Research at Boston College 2004-17, Center for Retirement Research. [Downloadable!]
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