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Is Extended Family in Low-Income Countries Altruistically Linked?

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  • Cheolsung Park

    ()
    (National University of Singapore)

Abstract

Using a micro data from Bangladesh, this paper tests whether an extended family in low-income countries is altruistically linked. Based on theoretical implications of altruism model, the paper tests whether interhousehold transfer is negatively related to the recipient's income and whether consumption of each of related households is uncorrelated with its own income, controlling for pooled income of the family. Test results do not support altruism as the basis for familial economic ties in low-income countries. We fail to reject that transfer from father, child, or sibling is uncorrelated to the recipient's income or wealth in most cases; and households' non-food consumption is estimated to be strongly correlated with their own income and wealth, even after related households' pooled income is controlled for.

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File URL: http://www.fas.nus.edu.sg/ecs/pub/wp/wp0107.pdf
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Bibliographic Info

Paper provided by National University of Singapore, Department of Economics in its series Departmental Working Papers with number wp0107.

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Length: 21 pages
Date of creation: Sep 2001
Date of revision:
Handle: RePEc:nus:nusewp:wp0107

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Keywords: altruism; interhousehold transfer; dynasty model; low-income country;

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  1. Joseph G. Altonji & Fumio Hayashi & Laurence Kotlikoff, . "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," IPR working papers 95-22, Institute for Policy Resarch at Northwestern University.
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  7. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-98, December.
  8. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-18, October.
  9. Lillard, L-A & Willis, R-J, 1997. "Motives for Intergenerational Transfers. Evidence from Malaysia," Papers 97-04, RAND - Reprint Series.
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  11. Barro, Robert J., 1974. "Are Government Bonds Net Wealth?," Scholarly Articles 3451399, Harvard University Department of Economics.
  12. Ravallion, Martin & Dearden, Lorraine, 1988. "Social Security in a "Moral Economy": An Empirical Analysis for Java," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 36-44, February.
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Cited by:
  1. Mukhopadhyay, Ujjaini & Chaudhuri, Sarbajit, 2011. "Economic liberalization, gender wage inequality and welfare – a theoretical analysis," MPRA Paper 32954, University Library of Munich, Germany.

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