Shaping intergenerational relationships: the demonstration effect
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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References listed on IDEAS
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- Bergstrom, T., 1995.
"Economics of a Family Way,"
95-07, Michigan - Center for Research on Economic & Social Theory.
- Anne Laferrere, 1997.
"Intergenerational Transmission Models :A Survey,"
97-23, Centre de Recherche en Economie et Statistique.
- Anne Laferrere, 1999. "Intergenerational Transmission Models: A Survey," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan, vol. 24(1), pages 2-26, January.
- Cox, Donald, 1990. "Intergenerational Transfers and Liquidity Constraints," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 187-217, February.
- Ted Bergstrom, 1995.
"Economic in a Family Way,"
_028, University of Michigan, Department of Economics.
- Cigno, Alessandro, 1993. "Intergenerational transfers without altruism : Family, market and state," European Journal of Political Economy, Elsevier, vol. 9(4), pages 505-518, November.
- Francois-Charles Wolff, 2001. "Private intergenerational contact in France and the demonstration effect," Applied Economics, Taylor & Francis Journals, vol. 33(2), pages 143-153.
- Donald Cox & Oded Stark, 1996. "Intergenerational Transfers and the Demonstration Effect," Boston College Working Papers in Economics 329., Boston College Department of Economics.
- Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
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