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

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  • Rob Alessie

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  • Viola Angelini

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  • Giacomo Pasini

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Abstract

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

Suggested Citation

  • 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.
  • Handle: RePEc:kap:decono:v:162:y:2014:i:2:p:193-213
    DOI: 10.1007/s10645-013-9221-5
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Elenka Brenna & Cinzia Novi, 2016. "Is caring for older parents detrimental to women’s mental health? The role of the European North–South gradient," Review of Economics of the Household, Springer, vol. 14(4), pages 745-778, December.
    2. Sanna Nivakoski, 2015. "The Exchange Motive in Intergenerational Transfers," Working Papers 201510, Geary Institute, University College Dublin.
    3. repec:uwp:jhriss:v:52:y:2017:i:2:p:531-572 is not listed on IDEAS
    4. repec:spr:jopoec:v:30:y:2017:i:3:d:10.1007_s00148-017-0635-2 is not listed on IDEAS
    5. Max Groneck & Frederic Krehl, 2014. "Bequests and Informal Long-Term Care: Evidence from the HRS Exit Interviews," Working Paper Series in Economics 79, University of Cologne, Department of Economics.
    6. Loretti I. Dobrescu, 2015. "To Love or to Pay: Savings and Health Care in Older Age," Journal of Human Resources, University of Wisconsin Press, vol. 50(1), pages 254-299.
    7. Justina Klimaviciute & Sergio Perelman & Pierre Pestieau & Jerome Schoenmaeckers, 2017. "Caring for dependent parents: Altruism, exchange or family norm?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 835-873, July.
    8. Giacomo Pasini & Rob Alessie & Adriaan Kalwij, 2016. "When you need it or when I die? Timing of monetary transfers from parents to children," Working Papers 2016:34, Department of Economics, University of Venice "Ca' Foscari".
    9. 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.
    10. Ludovico Carrino & Cristina Elisa Orso & Giacomo Pasini, 2015. "Demand of Long-Term Care and benefit eligibility across European countries," Working Papers 2015:26, Department of Economics, University of Venice "Ca' Foscari".
    11. Emanuele Ciani & Claudio Deiana, 2016. "No Free Lunch, Buddy: Housing Transfers and Informal Care Later in Life," Center for the Analysis of Public Policies (CAPP) 0134, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    12. Emanuele Ciani & Claudio Deiana, 2017. "No free lunch, Buddy: past housing transfers and informal care later in life," Temi di discussione (Economic working papers) 1117, Bank of Italy, Economic Research and International Relations Area.

    More about this item

    Keywords

    Intergenerational transfers; Altruism; Exchange; D12; J14;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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