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Parents' Desire to Make Equal Inter Vivos Transfers

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  • Elin Halvorsen
  • Thor Olav Thoresen

Abstract

This study argues that parents have a desire for dividing equally between their children, and that this motive applies to transfers of gifts inter vivos. We suggest that the equal division motive competes with traditional altruism: support to the child or the children with greatest needs. When parents are drawn between these two ambitions, the degree of income compensation should be stronger in one-child families and we expect the altruism motive to dominate the equal division desire at low levels of recipients’ income. We find support for both these hypotheses, when analysing Norwegian data for inter vivos transfers behaviour. The data include information about stated attitudes towards transfers among the parents, which also support the equal division motive.

Suggested Citation

  • Elin Halvorsen & Thor Olav Thoresen, 2008. "Parents' Desire to Make Equal Inter Vivos Transfers," CESifo Working Paper Series 2468, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_2468
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    Citations

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    Cited by:

    1. Javier OLIVERA ANGULO, 2011. "The division of parental transfers in Europe," Working Papers Department of Economics ces11.20, KU Leuven, Faculty of Economics and Business, Department of Economics.
    2. repec:dug:journl:y:2016:i:3:p:149-162 is not listed on IDEAS
    3. Suhaili Alma’amun & Mohd Khairy Kamarudin & Mehmet Asutay, 2016. "Motivations of Inter Vivos Transfers Among Malaysian Muslims," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(3), pages 149-162, JUNE.
    4. Tom Krebs & Moritz Kuhn & Mark L. J. Wright, 2015. "Human Capital Risk, Contract Enforcement, and the Macroeconomy," American Economic Review, American Economic Association, vol. 105(11), pages 3223-3272, November.
    5. OLIVERA Javier, 2016. "The division of inter-vivos parental transfers in Europe," LISER Working Paper Series 2016-06, LISER.
    6. repec:eee:joecag:v:9:y:2017:i:c:p:41-51 is not listed on IDEAS

    More about this item

    Keywords

    inter vivos gifts; equal divisions; altruism; sibling comparisons;

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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