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Motives for Household Private Transfers in Burkina Faso

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  • Harounan Kaziango

Abstract

Resource transfers among households have received considerable interest among economists in recent years. Two of the main reasons for the surge of interest in household transfers are the information on human nature conveyed by transfer behavior and the implication on income redistribution policy that private transfer might have. Empirical studies, however, provide mixed results on transfer behavior. This is because previous inquiries were confronted with several estimation issues and have focused on data from developed countries where private transfers are already small. This paper contributes to the literature on transfer behavior by using a multifaceted econometric approach to examine the motives of household transfers in Burkina, a low-income country with a well-documented tradition of gift exchanges. The findings suggest that risk sharing is not central to transfers. Altruistic transfers are apparent for the middle income class, but not a low income level. The evidence implies that crowding out may be minimal at a low income level, suggesting that public transfers targeting poor households may be effective.

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Bibliographic Info

Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 895.

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Length: 54 pages
Date of creation: Oct 2004
Date of revision:
Handle: RePEc:egc:wpaper:895

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Keywords: Private transfers; Altruism; Exchanges; Risk Sharing;

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References

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Citations

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Cited by:
  1. Mitrut, Andreea & Nordblom, Katarina, 2010. "Social norms and gift behavior: Theory and evidence from Romania," European Economic Review, Elsevier, vol. 54(8), pages 998-1015, November.
  2. Notten, Geranda & Neubourg, Chris de, 2007. "Managing risks: what Russian households do to smooth consumption?," MPRA Paper 4670, University Library of Munich, Germany.
  3. Joseph G. Altonji & Hidehiko Ichimura & Taisuke Otsu, 2008. "Estimating Derivatives in Nonseparable Models with Limited Dependent Variables," Cowles Foundation Discussion Papers 1668R, Cowles Foundation for Research in Economics, Yale University, revised May 2011.
  4. Batista, Catia & Silverman, Dan & Yang, Dean, 2013. "Directed Giving: Evidence from an Inter-Household Transfer Experiment," IZA Discussion Papers 7629, Institute for the Study of Labor (IZA).
  5. Richard P.C. Brown & Eliana V. Jimenez, 2008. "Remittances and Subjective Welfare in a Mixed-Motives Model: Evidence from Fiji," Discussion Papers Series 370, School of Economics, University of Queensland, Australia.
  6. Daniel M. Hungerman, 2014. "Public Goods, Hidden Income, and Tax Evasion: Some Nonstandard Results from the Warm-Glow Model," NBER Working Papers 19804, National Bureau of Economic Research, Inc.
  7. Beyene, Berhe Mekonnen, 2012. "The Link between International Remittances and Private Interhousehold Transfers," Memorandum 14/2012, Oslo University, Department of Economics.
  8. Mitrut, Andreea & Nordblom, Katarina, 2007. "Motives for Private Gift Transfers: Theory and Evidence from Romania," Working Papers in Economics 262, University of Gothenburg, Department of Economics, revised 30 Apr 2008.
  9. Renaud Bourlès & Yann Bramoullé, 2013. "Altruism in Networks," Working Papers halshs-00881451, HAL.
  10. Yoshito Takasaki, 2011. "Fraud and Poverty: Exploring Ex Ante Victim Data," Tsukuba Economics Working Papers 2011-002, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
  11. Eozenou, Patrick, 2008. "The Determinants of Private Transfers in Rural Vietnam," MPRA Paper 12773, University Library of Munich, Germany.
  12. Richard P.C. Brown & Eliana V. Jimenez, 2008. "A Mixed-Motives Model of Private Transfers with Subjectively-Assessed Recipient Need: Evidence from a Poor, Transfer-Dependent Economy," Discussion Papers Series 365, School of Economics, University of Queensland, Australia.
  13. Shoji, Masahiro & Aoyagi, Keitaro & Kasahara, Ryuji & Sawada, Yasuyuki, 2010. "Motives behind Community Participation," Working Papers 16, JICA Research Institute.
  14. Sylvain Dessy & Gaston Gohou & Désiré Vencatachellum, 2012. "Foreign Direct Investments in Africa's Farmlands: Threat or Opportunity for Local Populations?," Cahiers de recherche 1203, CIRPEE.

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