Compensatory Inter Vivos Gifts

Arbeitspapier

This discussion paper led to a publication in href=http://onlinelibrary.wiley.com/doi/10.1002/jae.1071/full>Journal of Applied Econometrics, 24(6), 993-1023.Parents’ transfer motives are important for understanding, e.g., macroeconomics, income (re)distribution, savings, and public finance. Using data from six biennial waves of the Health and Retirement Study 1992–2002, we estimate grouped tobit-type latent variable models with multi-level error components. First, we find that inter vivos transfers from parents to children are gifts, and not temporary help to overcome liquidity constraints. Second, inter vivos gifts are compensatory in the sense that life-time poorer children will receive higher transfers than their life-time richer siblings. Third, inter vivos gifts do not, however, make up the entire difference in life-time incomes.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 07-074/3

Classification and Topics

• Classification: Wirtschaft ; Household Behavior: General ; Altruism; Philanthropy; Intergenerational Transfers ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
• Subject: inter vivos gifts ; compensatory transfers ; liquidity constraints ; altruism ; exchange ; Intergenerationale Übertragung ; Altruismus ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hochguertel, Stefan ; Ohlsson, Henry
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/86537
• Last update: 10.03.2025, 11:41 AM CET