Strategic Interaction between Inter Vivos Gifts and Housing Acquisition
AbstractTo consider the policy event of a gift tax reduction earmarked for housing acquisition, the interdependence of parental gifts and children's housing investments is modeled, considering an informal care issue behind such decision making. The empirical results, which use a sample of households who purchased a house in Japan, demonstrate that such a tax cut would appear to have the following limited effects on boosting housing investment in equilibrium. First, even though transfers are encouraged, they consequently reduce housing investment because the housing investment function is negatively related to gifts. Second, increments in housing investment are further discouraged because the slopes of the gift and housing investment functions have opposite signs.
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 Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd11-201.
Date of creation: Aug 2011
Date of revision:
Intergenerational Transfer; Housing Investment; Gift Tax;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
This paper has been announced in the following NEP Reports:
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.:
- Joulfaian, David, 2004. "Gift taxes and lifetime transfers: time series evidence," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1917-1929, August.
- Nordblom, Katarina & Ohlsson, Henry, 2005.
"Tax Avoidance and Intra-Family Transfers,"
Working Paper Series
2005:6, Uppsala University, Department of Economics.
- 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.
- David Joulfaian, 2005.
"Choosing Between Gifts and Bequests: How Taxes Affect the Timing of Wealth Transfers,"
NBER Working Papers
11025, National Bureau of Economic Research, Inc.
- Joulfaian, David, 2005. "Choosing between gifts and bequests: How taxes affect the timing of wealth transfers," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2069-2091, December.
- Seymour Spilerman & Yuval Elmelech, 2001.
"Israeli Attitudes about Inter Vivos Transfers,"
- Giorgio Bellettini & Filippo Taddei, 2009.
"Real Estate Prices and the Importance of Bequest Taxation,"
Carlo Alberto Notebooks
107, Collegio Carlo Alberto, revised 2011.
- Giorgio Bellettini & Filippo Taddei, 2009. "Real Estate Prices and the Importance of Bequest Taxation," CESifo Working Paper Series 2577, CESifo Group Munich.
- Charles Yuji Horioka, 2002.
"Are the Japanese Selfish, Altruistic or Dynastic?,"
The Japanese Economic Review,
Japanese Economic Association, vol. 53(1), pages 26-54.
- Charles Yuji Horioka, 2001. "Are the Japanese Selfish, Altruistic, or Dynastic?," CIRJE F-Series CIRJE-F-134, CIRJE, Faculty of Economics, University of Tokyo.
- Charles Yuji Horioka, 2001. "Are the Japanese Selfish, Altruistic, or Dynastic?," ISER Discussion Paper 0556, Institute of Social and Economic Research, Osaka University.
- Charles Yuji Horioka, 2001. "Are the Japanese Selfish, Altruistic, or Dynastic?," NBER Working Papers 8577, National Bureau of Economic Research, Inc.
- Ken Yamada, 2006.
"Intra-family transfers in Japan: intergenerational co-residence, distance, and contact,"
Taylor & Francis Journals, vol. 38(16), pages 1839-1861.
- Ken Yamada, 2003. "Intra-family Transfers in Japan: Intergenerational Co-residence, Distance, andContact," ISER Discussion Paper 0575, Institute of Social and Economic Research, Osaka University.
- Ting Yin, 2009.
"Parent-Child Co-residence and Bequest Motives in China,"
Discussion Papers in Economics and Business
09-26, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Yin, Ting, 2010. "Parent-child co-residence and bequest motives in China," China Economic Review, Elsevier, vol. 21(4), pages 521-531, December.
- Guiso, Luigi & Jappelli, Tullio, 2002.
"Private Transfers, Borrowing Constraints and the Timing of Homeownership,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 34(2), pages 315-39, May.
- Luigi Guiso & Tullio Jappelli, 1999. "Private Transfers, Borrowing Constraints and the Timing of Homeownership," CSEF Working Papers 17, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Guiso, Luigi & Jappelli, Tullio, 1998. "Private Transfers, Borrowing Constraints and the Timing of Homeownership," CEPR Discussion Papers 2050, C.E.P.R. Discussion Papers.
- Cox, Donald & Stark, Oded, 2005.
"On the demand for grandchildren: tied transfers and the demonstration effect,"
Journal of Public Economics,
Elsevier, vol. 89(9-10), pages 1665-1697, September.
- Cox, Donald & Stark, Oded, 2004. "On the Demand for Grandchildren: Tied Transfers and the Demonstration Effect," Economics Series 158, Institute for Advanced Studies.
- Cox, Donald & Stark, Oded, 2004. "On The Demand For Grandchildren: Tied Transfers And The Demonstration Effect," Discussion Papers 18751, University of Bonn, Center for Development Research (ZEF).
- Engelhardt, Gary V. & Mayer, Christopher J., 1998.
"Intergenerational Transfers, Borrowing Constraints, and Saving Behavior: Evidence from the Housing Market,"
Journal of Urban Economics,
Elsevier, vol. 44(1), pages 135-157, July.
- Gary V. Engelhardt & Christopher J. Mayer, 1995. "Intergenerational transfers, borrowing constraints, and saving behavior: evidence from the housing market," Working Papers 95-11, Federal Reserve Bank of Boston.
- Kanemoto, Yoshitsugu, 1997. "The housing question in Japan," Regional Science and Urban Economics, Elsevier, vol. 27(6), pages 613-641, November.
- Maurice J. Roche & David Duffy, 2007. "Getting a Helping Hand: Parental Transfers and First-Time Homebuyers," Economics, Finance and Accounting Department Working Paper Series n1740507, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
- Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
- Andreja Cirman, 2008. "Intergenerational Transfers as a Response to Changes in the Housing Market in Slovenia," European Journal of Housing Policy, Taylor and Francis Journals, vol. 8(3), pages 303-315.
- Artle, Roland & Varaiya, Pravin, 1978. "Life cycle consumption and homeownership," Journal of Economic Theory, Elsevier, vol. 18(1), pages 38-58, June.
- Viola Angelini, 2007. "The strategic bequest motive: evidence from SHARE," "Marco Fanno" Working Papers 0062, Dipartimento di Scienze Economiche "Marco Fanno".
- Meliyanni Johar & Shiko Maruyama & Sayaka Nakamura, 2010. "Transition to Parent-Child Coresidence: Parental Needs and the Strategic Bequest Motive," Discussion Papers 2010-05, School of Economics, The University of New South Wales.
- Goodman, Allen C. & Kawai, Masahiro, 1982. "Permanent income, hedonic prices, and demand for housing: New evidence," Journal of Urban Economics, Elsevier, vol. 12(2), pages 214-237, September.
- Andreja Cirman, 2008. "Intergenerational Transfers as a Response to Changes in the Housing Market in Slovenia," International Journal of Housing Policy, Taylor & Francis Journals, vol. 8(3), pages 303-315.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tatsuji Makino).
If references are entirely missing, you can add them using this form.