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Is it true love? Altruism versus exchange in time and money transfers

Author

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  • Giacomo Pasini

    (Department of Economics, University Of Venice C� Foscari)

  • Rob Alessie

    (University of Groningen)

  • Viola Angelini

    (University of Groningen)

Abstract

This paper investigates what motivates intergenerational time and money transfers. We consider a model in which transfers may be driven not only by altruism, but also by exchange considerations. We use data from the Survey of Health, Ageing and Retirement in Europe (SHARE) to discriminate between the two motives. We show that both if we consider money transfers from parents to children and time transfers from children to parents, the empirical evidence rejects pure altruism in favor of exchange.

Suggested Citation

  • Giacomo Pasini & Rob Alessie & Viola Angelini, 2011. "Is it true love? Altruism versus exchange in time and money transfers," Working Papers 2011_27, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2011_27
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    2. Chiara Canta & Helmuth Cremer, 2023. "Asymmetric information, strategic transfers, and the design of long-term care policies," Oxford Economic Papers, Oxford University Press, vol. 75(1), pages 117-141.
    3. Diederich, Freya & König, Hans-Helmut & Brettschneider, Christian, 2021. "A longitudinal perspective on inter vivos transfers between children and their parents in need of long-term care," The Journal of the Economics of Ageing, Elsevier, vol. 19(C).
    4. Max Groneck, 2017. "Bequests and Informal Long-Term Care: Evidence from HRS Exit Interviews," Journal of Human Resources, University of Wisconsin Press, vol. 52(2), pages 531-572.
    5. Max Groneck & Frederic Krehl, 2014. "Bequests and Informal Long-Term Care: Evidence from the HRS Exit Interviews," Working Paper Series in Economics 79, University of Cologne, Department of Economics.
    6. Giacomo Pasini & Rob Alessie & Adriaan Kalwij, 2016. "When you need it or when I die? Timing of monetary transfers from parents to children," Working Papers 2016:34, Department of Economics, University of Venice "Ca' Foscari".
    7. Canta, Chiara & Cremer, Helmuth, 2019. "Long-term care policy with nonlinear strategic bequests," European Economic Review, Elsevier, vol. 119(C), pages 548-566.
    8. Emanuele Ciani & Claudio Deiana, 2016. "No Free Lunch, Buddy: Housing Transfers and Informal Care Later in Life," Center for the Analysis of Public Policies (CAPP) 0134, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    9. Rob Alessie & Viola Angelini & Giacomo Pasini, 2014. "Is It True Love? Altruism Versus Exchange in Time and Money Transfers," De Economist, Springer, vol. 162(2), pages 193-213, June.
    10. Michael Hatcher & Panayiotis M. Pourpourides, 2023. "Does the impact of private education on growth differ at different levels of credit market development?," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 291-322, February.
    11. Justina Klimaviciute & Pierre Pestieau & Jérôme Schoenmaeckers, 2019. "Family altruism and long-term care insurance," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(2), pages 216-230, April.
    12. Sanna Nivakoski, 2015. "The Exchange Motive in Intergenerational Transfers," Working Papers 201510, Geary Institute, University College Dublin.
    13. Alberto Pench, 2018. "Intra Generational Solidarity and Long Term Care: A Role for In Kind Transfers," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2018(1), pages 35-57.
    14. Christophe Courbage & Guillem Montoliu‐Montes, 2020. "Estate recovery and long‐term care insurance," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(4), pages 949-972, August.
    15. Justina Klimaviciute & Sergio Perelman & Pierre Pestieau & Jerome Schoenmaeckers, 2017. "Caring for dependent parents: Altruism, exchange or family norm?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 835-873, July.
    16. Emanuele Ciani & Claudio Deiana, 2018. "No free lunch, buddy: past housing transfers and informal care later in life," Review of Economics of the Household, Springer, vol. 16(4), pages 971-1001, December.
    17. Loretti I. Dobrescu, 2015. "To Love or to Pay: Savings and Health Care in Older Age," Journal of Human Resources, University of Wisconsin Press, vol. 50(1), pages 254-299.
    18. Costa-Font, Joan & Jiménez-Martín, Sergi & Vilaplana-Prieto, Cristina, 2022. "Do Public Caregiving Subsidies and Supports affect the Provision of Care and Transfers?," Journal of Health Economics, Elsevier, vol. 84(C).
    19. Ludovico Carrino & Cristina Elisa Orso & Giacomo Pasini, 2018. "Demand of long‐term care and benefit eligibility across European countries," Health Economics, John Wiley & Sons, Ltd., vol. 27(8), pages 1175-1188, August.
    20. Sanna Nivakoski, 2019. "Does the exchange motive influence intergenerational transfers? Evidence from Ireland," Review of Economics of the Household, Springer, vol. 17(3), pages 1049-1079, September.

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    More about this item

    Keywords

    Intergenerational transfers; altruism; exchange;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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