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Testing the altruism hypothesis with italian cohort data

  • Rizza, Pietro

In this paper I follow Abel and Kotlikoff 1994 non-parametric approach based on consumption cohort data to test for intergenerational altruism among Italian households. The Italian socio-economic framework represents an interesting ground to test for the Barro’s 1974 model given the stronger family linkages usually present among Italian households. All tests reject altruism. Further, I evaluate how restrictive is the assumption of a zero correlation between the clan’s Euler errors and the demographic structure of the clan. I find no evidence of any major role played by the age composition of the clan and conclude that the zero correlation assumption is reasonable.

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File URL: http://mpra.ub.uni-muenchen.de/20561/1/MPRA_paper_20561.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20561.

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Date of creation: 15 Jan 2008
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Handle: RePEc:pra:mprapa:20561
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  1. Joseph G. Altonji & Aloysius Siow, 1986. "Testing the Response of Consumption to Income Changes with (Noisy) PanelData," NBER Working Papers 2012, National Bureau of Economic Research, Inc.
  2. Kotlikoff, Laurence J, 1988. "Intergenerational Transfers and Savings," Journal of Economic Perspectives, American Economic Association, vol. 2(2), pages 41-58, Spring.
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