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Is It True Love? Altruism Versus Exchange in Time and Money Transfers

Listed author(s):
  • Rob Alessie

    ()

  • Viola Angelini

    ()

  • Giacomo Pasini

    ()

This paper investigates what motivates intergenerational inter-vivos time and money transfers. We consider a model in which transfers may be driven not only by altruism, but also by exchange considerations. We use data from the Survey of Health, Ageing and Retirement in Europe to discriminate between the two motives. We show that both if we consider money transfers from parents to children and time transfers from children to parents, the empirical evidence rejects pure altruism in favor of exchange. This result has important policy implications on the effectiveness of formal care provision as a substitute for informal care and on the impact of taxation on transfers. Copyright Springer Science+Business Media New York 2014

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File URL: http://hdl.handle.net/10.1007/s10645-013-9221-5
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Article provided by Springer in its journal De Economist.

Volume (Year): 162 (2014)
Issue (Month): 2 (June)
Pages: 193-213

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Handle: RePEc:kap:decono:v:162:y:2014:i:2:p:193-213
DOI: 10.1007/s10645-013-9221-5
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Order Information: Web: http://www.springer.com/economics/journal/10645/PS2

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  10. H. Elizabeth Peters & A. Sinan Unur & Jeremy Clark & William D. Schulze, 2004. "Free-Riding and the Provision of Public Goods in the Family: A Laboratory Experiment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(1), pages 283-299, 02.
  11. Cox, Donald & Rank, Mark R, 1992. "Inter-vivos Transfers and Intergenerational Exchange," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 305-314, May.
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  13. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1997. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1121-1166, December.
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  17. Frank A. Sloan & Jingshu Wang & Harold H. Zhang, 2002. "Upstream Intergenerational Transfers," Southern Economic Journal, Southern Economic Association, vol. 69(2), pages 363-380, October.
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  25. Rob Alessie & Viola Angelini & Giacomo Pasini, 2014. "Is It True Love? Altruism Versus Exchange in Time and Money Transfers," De Economist, Springer, vol. 162(2), pages 193-213, June.
  26. James Poterba, 1998. "Estate and Gift Taxes and Incentives for Inter Vivos Giving in the United States," NBER Working Papers 6842, National Bureau of Economic Research, Inc.
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