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The Exchange Motive in Intergenerational Transfers

Author

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  • Sanna Nivakoski

    (UCD Geary Institute for Public Policy, University College Dublin)

Abstract

This article examines the exchange motive in intergenerational monetary transfers, namely current inter vivos transfers and planned bequests. The focus is on the causal effect of child-provided help on transfers from parents to adult children. Cross-sectionally, small transfers and help are positively correlated, with the findings robust to inclusion of child-parent relationship controls and lagged help. In an analysis of first-differenced data, the effect is statistically significant at the 10 per cent level. The analysis of planned bequests reveals no effect of child-provided help, suggesting that inter vivos transfers are better suited to exchange.

Suggested Citation

  • Sanna Nivakoski, 2015. "The Exchange Motive in Intergenerational Transfers," Working Papers 201510, Geary Institute, University College Dublin.
  • Handle: RePEc:ucd:wpaper:201510
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    File URL: http://www.ucd.ie/geary/static/publications/workingpapers/gearywp201510.pdf
    File Function: First version, 2015
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    References listed on IDEAS

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    Cited by:

    1. Abigail Loxton, 2019. "Gender Differences in Inter Vivos Transfers," CAEPR Working Papers 2019-002, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.

    More about this item

    Keywords

    exchange motive; intergenerational transfers; inter vivos; bequests; informal care;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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