Is it True Love? Altruism Versus Exchange in Time and Money Transfers
Rob J.M. Alessie
University of Groningen; Netspar; Tinbergen Institute; Tilburg University - Center for Economic Research (CentER); University of Utrecht - Utrecht University School of Economics
University of Groningen - Faculty of Economics and Business; Netspar
Ca Foscari University of Venice - Department of Economics; Netspar; University of Venice - SSAV
February 22, 2011
Netspar Discussion Paper No. 02/2011-012
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 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. This result has important policy implications on the effectiveness of formal care provision as a substitute for informal care and on the impact of taxation on transfers.
Number of Pages in PDF File: 38
Keywords: Intergenerational transfers, altruism, exchange
JEL Classification: D12, J14working papers series
Date posted: April 19, 2011
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