Shaping intergenerational relationships the demonstration effect
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.
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- Theodore C. Bergstrom, .
"Economics in a Family Way,"
ELSE working papers
018, ESRC Centre on Economics Learning and Social Evolution.
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