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Shaping intergenerational relationships: the demonstration effect

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  • Jellal, Mohamed
  • Wolff, Francois-Charles

Abstract

According to the demonstration effect theory, parents make intergenerational transfers to their elders in order to elicit a symmetric future behavior from their children. In this paper we show that upstream transfers are expected to increase with low returns from alternative financial assets and with the donor’s life expectancy. The latter effect creates a greater incentive for daughters to care for parents.
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  • Jellal, Mohamed & Wolff, Francois-Charles, 2000. "Shaping intergenerational relationships: the demonstration effect," Economics Letters, Elsevier, vol. 68(3), pages 255-261, September.
  • Handle: RePEc:eee:ecolet:v:68:y:2000:i:3:p:255-261
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    References listed on IDEAS

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    1. Theodore C. Bergstrom, 1996. "Economics in a Family Way," Journal of Economic Literature, American Economic Association, vol. 34(4), pages 1903-1934, December.
    2. Donald Cox, 1990. "Intergenerational Transfers and Liquidity Constraints," The Quarterly Journal of Economics, Oxford University Press, vol. 105(1), pages 187-217.
    3. Anne Laferrere, 1999. "Intergenerational Transmission Models: A Survey," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 24(1), pages 2-26, January.
    4. Donald Cox & Oded Stark, 1996. "Intergenerational Transfers and the Demonstration Effect," Boston College Working Papers in Economics 329., Boston College Department of Economics.
    5. Cigno, Alessandro, 1993. "Intergenerational transfers without altruism : Family, market and state," European Journal of Political Economy, Elsevier, vol. 9(4), pages 505-518, November.
    6. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-546, June.
    7. Francois-Charles Wolff, 2001. "Private intergenerational contact in France and the demonstration effect," Applied Economics, Taylor & Francis Journals, vol. 33(2), pages 143-153.
    8. Theodore C. Bergstrom, 1996. "Economics in a Family Way," Journal of Economic Literature, American Economic Association, vol. 34(4), pages 1903-1934, December.
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    Citations

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    Cited by:

    1. Partha Deb & Cagla Okten & Una Osili, 2010. "Giving to family versus giving to the community within and across generations," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 963-987, June.
    2. Wolff, Francois-Charles & Laferrere, Anne, 2006. "Microeconomic models of family transfers," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
    3. Mohamed Jellal & Francois-Charles Wolff, 2002. "Altruistic Bequests with Inherited Tastes," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 95-113, August.
    4. Gimenez-Nadal, J. Ignacio & Marcén, Miriam & Molina, José Alberto, 2007. "How Does the Presence of Children Affect Dependent Care? A Psycho-Economic Approach," IZA Discussion Papers 2726, Institute for the Study of Labor (IZA).
    5. Jellal, Mohamed & Bouzahzah, Mohamed, 2012. "Social security family finance and demography," MPRA Paper 38804, University Library of Munich, Germany.
    6. Mohamed Jellal & Francois-Charles Wolff, 2002. "Insecure old-age security," Oxford Economic Papers, Oxford University Press, vol. 54(4), pages 636-648, October.
    7. Thibault, Emmanuel, 2016. "Demonstration effect and dynamic efficiency," Economics Letters, Elsevier, vol. 147(C), pages 42-45.
    8. Mohamed Jellal & François-Charles Wolff, 2003. "Solidarités familiales par la démonstration," Revue économique, Presses de Sciences-Po, vol. 54(4), pages 785-810.
    9. Jellal, Mohamed & Wolff, Francois-Charles, 2002. "Cultural evolutionary altruism: theory and evidence," European Journal of Political Economy, Elsevier, vol. 18(2), pages 241-262, June.
    10. Ken Yamada, 2006. "Intra-family transfers in Japan: intergenerational co-residence, distance, and contact," Applied Economics, Taylor & Francis Journals, vol. 38(16), pages 1839-1861.
    11. Mohamed Jellal & François-Charles Wolff, 2005. "Dynamique des transferts intergénérationnels et effet de démonstration," Annals of Economics and Statistics, GENES, issue 77, pages 81-107.
    12. Mitrut, Andreea & Wolff, François-Charles, 2009. "A causal test of the demonstration effect theory," Economics Letters, Elsevier, vol. 103(1), pages 52-54, April.

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    JEL classification:

    • D1 - Microeconomics - - Household Behavior

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