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Motives for Private Gift Transfers: Theory and Evidence from Romania

  • Mitrut, Andreea

    ()

    (Department of Economics, School of Business, Economics and Law, University of Gothenburg)

  • Nordblom, Katarina

    ()

    (Department of Economics, School of Business, Economics and Law, University of Gothenburg)

In many developing and transitional countries, inter-household transfers in general and gifts in particular are sizable and very important. We use unique Romanian data that enables us, contrary to most previous studies, to isolate pure gifts from other kinds of private transfers and to study them in detail. We find that social norms are important for explaining the occurrence of gifts and that the rich and the poor receive to the same extent. However, we find different motives for gifts to the rich and the poor. Middle- and high-income households are part of reciprocal networks and receive more the higher their incomes and the more they give to others. Although the poor may be excluded from reciprocal networks, they still receive, since there is a social duty norm to give.

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File URL: http://hdl.handle.net/2077/4735
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 262.

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Length: 33 pages
Date of creation: 04 Sep 2007
Date of revision: 30 Apr 2008
Publication status: Published as Mitrut, Andreea and Katarina Nordblom, 'Social Norms and Gift Behavior: Theory and Evidence from Romania' in European Economic Review, 2010, pages 998-1015.
Handle: RePEc:hhs:gunwpe:0262
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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