Private interhousehold transfers: What happens to sender households?
I examine household resource reallocation when private transfers are sent to nonhousehold members living elsewhere. The literature has so far focused on the impact of private transfers on the recipients, but not on the senders. Potential endogeneity of private transfers is handled by fixed-effect instrumental-variable estimation. Vietnamese panel data from the 1990s suggest that outward interhousehold transfers by parents reduce the sender household's expenditures on the education of each of their children.
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