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Motives for Private Gift Transfers: Theory and Evidence from Romania

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Author Info
Mitrut, Andreea () (Department of Economics, School of Business, Economics and Law, University of Gothenburg)
Nordblom, Katarina () (Department of Economics, School of Business, Economics and Law, University of Gothenburg)

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Abstract

In many developing and transitional countries, inter-household transfers in general and gifts in particular are sizable and very important. We use unique Romanian data that enables us, contrary to most previous studies, to isolate pure gifts from other kinds of private transfers and to study them in detail. We find that social norms are important for explaining the occurrence of gifts and that the rich and the poor receive to the same extent. However, we find different motives for gifts to the rich and the poor. Middle- and high-income households are part of reciprocal networks and receive more the higher their incomes and the more they give to others. Although the poor may be excluded from reciprocal networks, they still receive, since there is a social duty norm to give.

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File URL: http://hdl.handle.net/2077/4735
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 262.

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Length: 33 pages
Date of creation: 04 Sep 2007
Date of revision: 30 Apr 2008
Handle: RePEc:hhs:gunwpe:0262

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Gifts Transfers altruism reciprocity Romania social norms

Find related papers by JEL classification:
D10 - Microeconomics - - Household Behavior - - - General
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped
R20 - Urban, Rural, and Regional Economics - - Household Analysis - - - General
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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This page was last updated on 2008-6-24.


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