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Altruism, Exchange and Crowding Out of Private Support to the Elderly: Evidence from a Demogrant in Mexico

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Author Info
Laura Juarez () (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))

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Abstract

This paper uses a recent demogrant for the elderly in Mexico City to estimate the e¤ect of an exogenous increase in the income of older individuals on the amount of private transfers they receive. My results show that not controlling for the endogeneity of income replicates the positive or small negative e¤ects of income on the amount of private transfers received obtained by previous work. In contrast, my instrumental variables strategy yields negative and signi.cant income e¤ects, not far from the minus one implied by altruistic models, suggesting that a change in the public resources for elderly could be neutralized by the response of private transfers.

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Publisher Info
Paper provided by Centro de Investigacion Economica, ITAM in its series Working Papers with number 0707.

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Length: 27 pages
Date of creation: Nov 2007
Date of revision:
Handle: RePEc:cie:wpaper:0707

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