Intergenerational transfers: the ignored role of time
AbstractThe literature on inter vivos and intergenerational transfers has largely focussed on the possible determinants of such transfers. Specifically, much of the empirical work has examined whether transfers are driven by altruistic relationship between “dynastic” households. However, the empirical literature has consistently overlooked the possibility that transfers may be driven by specific events in the recipients’ lives like marriage, childbirth and illness. Further, it has not addressed the possibility that within a reasonably long time frame – say, one year – transfers may influence household income as much as household income influences the probability and magnitude of transfers. This paper addresses these lacunae in the existing literature. Using GSOEP data from the 1996 and 1997 surveys, it shows that demographic and other events determine transfers to a significant extent, and also that overlooking the possible endogeneity of income may lead to bias in the econometric estimations. (AUTHOR)
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Max Planck Institute for Demographic Research, Rostock, Germany in its series MPIDR Working Papers with number WP-2001-008.
Date of creation: Mar 2001
Date of revision:
Contact details of provider:
Web page: http://www.demogr.mpg.de/
Find related papers by JEL classification:
- J1 - Labor and Demographic Economics - - Demographic Economics
- Z0 - Other Special Topics - - General
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.:
- Cox, Donald C & Jimenez, Emmanuel, 1992. "Social Security and Private Transfers in Developing Countries: The Case of Peru," World Bank Economic Review, World Bank Group, vol. 6(1), pages 155-69, January.
- Becker, Gary S, 1974.
"A Theory of Social Interactions,"
Journal of Political Economy,
University of Chicago Press, vol. 82(6), pages 1063-93, Nov.-Dec..
- Donald Cox & Emmanuel Jiminez, 1993. "Private Transfers And The Effectiveness Of Public Income Redistribution In The Philippines," Boston College Working Papers in Economics 236, Boston College Department of Economics.
- Cox, Donald, 1990. "Intergenerational Transfers and Liquidity Constraints," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 187-217, February.
- Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986.
"The Strategic Bequest Motive,"
Journal of Labor Economics,
University of Chicago Press, vol. 4(3), pages S151-82, July.
- Barro, Robert J, 1974.
"Are Government Bonds Net Wealth?,"
Journal of Political Economy,
University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
- Donald Cox & Oded Stark, 1996. "Intergenerational Transfers and the Demonstration Effect," Boston College Working Papers in Economics 329., Boston College Department of Economics.
- Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992.
"Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data,"
American Economic Review,
American Economic Association, vol. 82(5), pages 1177-98, December.
- Joseph G. Altonji & Fumio Hayashi & Laurence J. Kotlikoff, 1993. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," NBER Working Papers 3046, National Bureau of Economic Research, Inc.
- Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
- Kathleen McGarry, 2000. "Testing Parental Altruism: Implications of a Dynamic Model," NBER Working Papers 7593, National Bureau of Economic Research, Inc.
- Kathleen McGarry, 1997. "Inter vivos Transfers and Intended Bequests," NBER Working Papers 6345, National Bureau of Economic Research, Inc.
- Lee, Ronald & Mason, Andrew & Miller, Timothy, 2000. "From Transfers to Individual Responsibility: Implications for Savings and Capital Accumulation in Taiwan and the United States," Arbetsrapport 2000:3, Institute for Futures Studies.
- Fousseynou Bah, 2011. "A Simultaneous Determination of the Inter Vivos Transfer and the Unemployment Duration: the Malian case," Working Papers halshs-00630262, HAL.
- Schwarze, Johannes, 2004. "Living Conditions of Children and Parental Well-Being – Evidence from German Data on Life Satisfaction," IZA Discussion Papers 1200, Institute for the Study of Labor (IZA).
- Reil-Held, Anette, 2004. "Crowding out or crowding in? Public and private transfers in Germany," Sonderforschungsbereich 504 Publications 04-68, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
- Anette Reil Held, 2005. "Crowding out or crowding in?," MEA discussion paper series 05072, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Wilhelm).
If references are entirely missing, you can add them using this form.