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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- Theodore C. Bergstrom, 1995. "Economics in a Family Way," Labor and Demography 9507002, EconWPA, revised 06 Feb 1996.
- 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.
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