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Motives for Private Gift Transfers: Theory and Evidence from Romania

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  • 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)

Abstract

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.

Suggested Citation

  • Mitrut, Andreea & Nordblom, Katarina, 2007. "Motives for Private Gift Transfers: Theory and Evidence from Romania," Working Papers in Economics 262, University of Gothenburg, Department of Economics, revised 30 Apr 2008.
  • Handle: RePEc:hhs:gunwpe:0262
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    File URL: http://hdl.handle.net/2077/4735
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    References listed on IDEAS

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    Cited by:

    1. Mitrut, Andreea & Wolff, François-Charles, 2009. "A causal test of the demonstration effect theory," Economics Letters, Elsevier, vol. 103(1), pages 52-54, April.

    More about this item

    Keywords

    Gifts; Transfers; altruism; reciprocity; Romania; social norms;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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