Altruism Vs. Exchange In Intergenerational Transfers: New Evidence From Children'S Health Care
AbstractWe put in perspective two competing hypothesis on the nature of intergenerational transfers: altruism vs. exchange motivation. Unlike previous approaches, we concentrate on non-monetary transfers measured as the effort that parents need to make in order to prevent children?s fatal health episodes. It is shown that, under the pure altruism hypothesis richer parents should be more prompt than poorer ones to exert this effort in the face of a bad-health signal. Inversely, richer parents would need to observe a higher signal than poorer when parents consider raising healthy children as an investment for the future times. Using data on frequency of utilization of the emergency room services and doctor?s office visits by low-age children, infant mortality and home-accident preventive care, we reject the null of altruism. Instead, we conclude that exchange motives do not enter into contradiction with the evidence.
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Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2003-26.
Length: 53 pages
Date of creation: Jul 2003
Date of revision:
Publication status: Published by Ivie
Intergenerational transfers; altruism and exchange motivations; child;
Find related papers by JEL classification:
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
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