Intergenerational Transmission Models: A Survey
The paper presents transfers between generations taking place within families: inheritance, gifts, help and services. Their economic motivations are seen through three main frameworks: the altruistic model where the child's utility influences the parent's utility; the model where transfers are exchanged, more or less directly, for services from adult children; and a model, labelled the “mutuality model”, where three generations co-exist and where transfers to children are an investment for old age. The consequences of the different models of transfer for inequality and the links between private and public or market transfers are then presented, together with the most recent empirical tests. The Geneva Papers on Risk and Insurance (1999) 24, 2–26. doi:10.1111/1468-0440.00002
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Volume (Year): 24 (1999)
Issue (Month): 1 (January)
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