Intergenerational transfers: the ignored role of time
The literature on inter vivos and intergenerational transfers has largely focussed on the possible determinants of such transfers. Specifically, much of the empirical work has examined whether transfers are driven by altruistic relationship between “dynastic” households. However, the empirical literature has consistently overlooked the possibility that transfers may be driven by specific events in the recipients’ lives like marriage, childbirth and illness. Further, it has not addressed the possibility that within a reasonably long time frame – say, one year – transfers may influence household income as much as household income influences the probability and magnitude of transfers. This paper addresses these lacunae in the existing literature. Using GSOEP data from the 1996 and 1997 surveys, it shows that demographic and other events determine transfers to a significant extent, and also that overlooking the possible endogeneity of income may lead to bias in the econometric estimations. (AUTHOR)
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Donald Cox, 1990. "Intergenerational Transfers and Liquidity Constraints," The Quarterly Journal of Economics, Oxford University Press, vol. 105(1), pages 187-217.
- Becker, Gary S, 1974.
"A Theory of Social Interactions,"
Journal of Political Economy,
University of Chicago Press, vol. 82(6), pages 1063-93, Nov.-Dec..
- Cox, Donald C & Jimenez, Emmanuel, 1992. "Social Security and Private Transfers in Developing Countries: The Case of Peru," World Bank Economic Review, World Bank Group, vol. 6(1), pages 155-69, January.
- Kathleen McGarry, 1997. "Inter vivos Transfers and Intended Bequests," NBER Working Papers 6345, National Bureau of Economic Research, Inc.
- Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1985.
"The Strategic Bequest Motive,"
Journal of Political Economy,
University of Chicago Press, vol. 93(6), pages 1045-76, December.
- Kathleen McGarry, 2000. "Testing Parental Altruism: Implications of a Dynamic Model," NBER Working Papers 7593, National Bureau of Economic Research, Inc.
- Joseph G. Altonji & Fumio Hayashi & Laurence J. Kotlikoff, 1989.
"Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data,"
NBER Working Papers
3046, National Bureau of Economic Research, Inc.
- Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-98, December.
- Lee, Ronald & Mason, Andrew & Miller, Timothy, 2000. "From Transfers to Individual Responsibility: Implications for Savings and Capital Accumulation in Taiwan and the United States," Arbetsrapport 2000:3, Institute for Futures Studies.
- Donald Cox & Emmanuel Jiminez, 1993. "Private Transfers And The Effectiveness Of Public Income Redistribution In The Philippines," Boston College Working Papers in Economics 236, Boston College Department of Economics.
- Barro, Robert J., 1974.
"Are Government Bonds Net Wealth?,"
3451399, Harvard University Department of Economics.
- Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
- Donald Cox & Oded Stark, 1996. "Intergenerational Transfers and the Demonstration Effect," Boston College Working Papers in Economics 329., Boston College Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:dem:wpaper:wp-2001-008. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Wilhelm)
If references are entirely missing, you can add them using this form.