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Giving to Family versus Giving to the Community Within and Across Generations

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Author Info
Partha Deb () (Hunter College, Department of Economics)
Cagla Okten
Una Okonkwo Osili

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Abstract

In this paper, we examine relationship between giving to family, and community institutions, within and across generations, a previously unexplored subject. We investigate the relationship between these two types of transfer networks using new data from the Indonesian Family Life Surveys (IFLS). From our results, financial transfers to family members are positively correlated with giving to community organizations for both parent or origin households and adult split-offs living outside their households of origin. We also study the role of the family in shaping transfer behavior, and find that transfer behavior of adults living outside of their household of origin is significantly associated with parent or origin household transfer behavior. Our estimation strategy is based on the method of maximum simulated likelihood (MSL), which allows us to account for the correlation in error terms within and across generations.

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Paper provided by Hunter College: Department of Economics in its series Hunter College Department of Economics Working Papers with number 02/6.

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Length: 31 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:htr:hcecon:02/6

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  1. Ngina S. Chiteji & Frank P. Stafford, 1999. "Portfolio Choices of Parents and Their Children as Young Adults: Asset Accumulation by African-American Families," American Economic Review, American Economic Association, vol. 89(2), pages 377-380, May. [Downloadable!] (restricted)
  2. Cameron, Lisa & Cobb-Clark, Deborah A., 2001. "Old-Age Support in Developing Countries: Labor Supply, Intergenerational Transfers and Living Arrangements," IZA Discussion Papers 289, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470. [Downloadable!]
  4. Jellal, Mohamed & Wolff, Francois-Charles, 2000. "Shaping intergenerational relationships: the demonstration effect," Economics Letters, Elsevier, vol. 68(3), pages 255-261, September. [Downloadable!] (restricted)
  5. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December. [Downloadable!] (restricted)
  6. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March. [Downloadable!]
  7. Donald Cox & Oded Stark, 1996. "Intergenerational Transfers and the Demonstration Effect," Boston College Working Papers in Economics 329., Boston College Department of Economics. [Downloadable!]
  8. Alberto Alesina & Eliana La Ferrara, 2000. "The Determinants of Trust," NBER Working Papers 7621, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Jonathan Morduch, 1999. "The Microfinance Promise," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1569-1614, December. [Downloadable!] (restricted)
  10. Pollak, Robert A, 1985. "A Transaction Cost Approach to Families and Households," Journal of Economic Literature, American Economic Association, vol. 23(2), pages 581-608, June. [Downloadable!] (restricted)
  11. Arrondel, Luc & Masson, Andre, 2001. " Family Transfers Involving Three Generations," Scandinavian Journal of Economics, Blackwell Publishing, vol. 103(3), pages 415-43, September. [Downloadable!] (restricted)
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  12. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1997. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1121-66, December.
    Other versions:
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