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Shaping intergenerational relationships the demonstration effect

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  • Jellal, Mohamed
  • wolff, François charles

Abstract

According to the demonstration effect theory, parents make intergenerational transfers to their elders in order to elicit a symmetric future behavior from their children. In this paper we show that upstream transfers are expected to increase with low returns from alternative financial assets and with the donor’s life expectancy. The latter effect creates a greater incentive for daughters to care for parents.

Suggested Citation

  • Jellal, Mohamed & wolff, François charles, 2000. "Shaping intergenerational relationships the demonstration effect," MPRA Paper 38512, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:38512
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    References listed on IDEAS

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    1. Anne Laferrère, 2000. "Intergenerational Transmission Models: A Survey," International Economic Association Series, in: L.-A. Gérard-Varet & S.-C. Kolm & J. Mercier Ythier (ed.), The Economics of Reciprocity, Giving and Altruism, chapter 11, pages 207-225, Palgrave Macmillan.
    2. Cigno, Alessandro, 1993. "Intergenerational transfers without altruism : Family, market and state," European Journal of Political Economy, Elsevier, vol. 9(4), pages 505-518, November.
    3. Bergstrom, Theodore C & Stark, Oded, 1993. "How Altruism Can Prevail in an Evolutionary Environment," American Economic Review, American Economic Association, vol. 83(2), pages 149-155, May.
    4. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-546, June.
    5. Donald Cox & Oded Stark, 1993. "Intergenerational Transfers And Demonstration Effect," Boston College Working Papers in Economics 244, Boston College Department of Economics.
    6. Francois-Charles Wolff, 2001. "Private intergenerational contact in France and the demonstration effect," Applied Economics, Taylor & Francis Journals, vol. 33(2), pages 143-153.
    7. Theodore C. Bergstrom, 1996. "Economics in a Family Way," Journal of Economic Literature, American Economic Association, vol. 34(4), pages 1903-1934, December.
    8. Donald Cox, 1990. "Intergenerational Transfers and Liquidity Constraints," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(1), pages 187-217.
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    Cited by:

    1. Wolff, Francois-Charles & Laferrere, Anne, 2006. "Microeconomic models of family transfers," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 13, pages 889-969, Elsevier.
    2. Mohamed Jellal & Francois-Charles Wolff, 2002. "Altruistic Bequests with Inherited Tastes," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 95-113, August.
    3. Jellal, Mohamed & Bouzahzah, Mohamed, 2012. "Social security family finance and demography," MPRA Paper 38804, University Library of Munich, Germany.
    4. Jellal, Mohamed & Wolff, Francois-Charles, 2002. "Cultural evolutionary altruism: theory and evidence," European Journal of Political Economy, Elsevier, vol. 18(2), pages 241-262, June.
    5. Mohamed Jellal & Francois-Charles Wolff, 2002. "Insecure old-age security," Oxford Economic Papers, Oxford University Press, vol. 54(4), pages 636-648, October.
    6. Thibault, Emmanuel, 2016. "Demonstration effect and dynamic efficiency," Economics Letters, Elsevier, vol. 147(C), pages 42-45.
    7. Barnet-Verzat, Christine & Wolff, Francois-Charles, 2002. "Motives for pocket money allowance and family incentives," Journal of Economic Psychology, Elsevier, vol. 23(3), pages 339-366, June.
    8. Ken Yamada, 2006. "Intra-family transfers in Japan: intergenerational co-residence, distance, and contact," Applied Economics, Taylor & Francis Journals, vol. 38(16), pages 1839-1861.
    9. Mohamed Jellal & François-Charles Wolff, 2005. "Dynamique des transferts intergénérationnels et effet de démonstration," Annals of Economics and Statistics, GENES, issue 77, pages 81-107.
    10. Partha Deb & Cagla Okten & Una Osili, 2010. "Giving to family versus giving to the community within and across generations," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 963-987, June.
    11. Gimenez-Nadal, José Ignacio & Marcén, Miriam & Molina, José Alberto, 2007. "How Does the Presence of Children Affect Dependent Care? A Psycho-Economic Approach," IZA Discussion Papers 2726, Institute of Labor Economics (IZA).
    12. Mohamed Jellal & François-Charles Wolff, 2003. "Solidarités familiales par la démonstration," Revue économique, Presses de Sciences-Po, vol. 54(4), pages 785-810.
    13. Daniel L. Millimet & Michael Nieswiadomy & Daniel Slottje, 2010. "Detailed Estimation Of Worklife Expectancy For The Measurement Of Human Capital: Accounting For Marriage And Children," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 339-361, April.
    14. Yonas Alem & Lisa Andersson, 2019. "International Remittances and Private Interhousehold Transfers: Exploring the Links," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(4), pages 902-928, September.
    15. Levin, Mark (Левин, Марк) & Matrosova, Ksenia (Матросова, Ксения), 2018. "Development and Research of Economic Behavior of Households in Changing Conditions [Разработка И Исследование Экономического Поведения Домохозяйств В Изменяющихся Условиях]," Working Papers 041825, Russian Presidential Academy of National Economy and Public Administration.
    16. Mitrut, Andreea & Wolff, François-Charles, 2009. "A causal test of the demonstration effect theory," Economics Letters, Elsevier, vol. 103(1), pages 52-54, April.

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    More about this item

    Keywords

    Family ; Intergenerational transfer; Demonstration effect; Imitation;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior

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