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Altruism, Exchange and Crowding Out of Private Support to the Elderly: Evidence from a Demogrant in Mexico

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  • Laura Juarez

    () (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))

Abstract

This paper uses a recent demogrant for the elderly in Mexico City to estimate the e¤ect of an exogenous increase in the income of older individuals on the amount of private transfers they receive. My results show that not controlling for the endogeneity of income replicates the positive or small negative e¤ects of income on the amount of private transfers received obtained by previous work. In contrast, my instrumental variables strategy yields negative and signi.cant income e¤ects, not far from the minus one implied by altruistic models, suggesting that a change in the public resources for elderly could be neutralized by the response of private transfers.

Suggested Citation

  • Laura Juarez, 2007. "Altruism, Exchange and Crowding Out of Private Support to the Elderly: Evidence from a Demogrant in Mexico," Working Papers 0707, Centro de Investigacion Economica, ITAM.
  • Handle: RePEc:cie:wpaper:0707
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    File URL: http://allman.rhon.itam.mx/~ljuarez/juareztransfers.pdf
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    References listed on IDEAS

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    Cited by:

    1. Haizhen Mou & Stanley L. Winer, 2012. "Fiscal Incidence when both Individual Welfare and Family Structure Matter: The Case of Subsidization of Home-Care for the Elderly," CESifo Working Paper Series 3731, CESifo Group Munich.

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