Parents' Desire to Make Equal Inter Vivos Transfers

34 Pages Posted: 24 Nov 2008

See all articles by Thor O. Thoresen

Thor O. Thoresen

Statistics Norway - Research Department; CESifo (Center for Economic Studies and Ifo Institute)

Elin Halvorsen

Statistics Norway - Research Department; University of Oslo - Department of Economics

Date Written: November 2008

Abstract

This study argues that parents have a desire for dividing equally between their children, and that this motive applies to transfers of gifts inter vivos. We suggest that the equal division motive competes with traditional altruism: support to the child or the children with greatest needs. When parents are drawn between these two ambitions, the degree of income compensation should be stronger in one-child families and we expect the altruism motive to dominate the equal division desire at low levels of recipients' income. We find support for both these hypotheses, when analysing Norwegian data for inter vivos transfers behaviour. The data include information about stated attitudes towards transfers among the parents, which also support the equal division motive.

Keywords: inter vivos gifts, equal divisions, altruism, sibling comparisons

JEL Classification: D64, D91, H21

Suggested Citation

Thoresen, Thor O. and Halvorsen, Elin, Parents' Desire to Make Equal Inter Vivos Transfers (November 2008). CESifo Working Paper Series No. 2468, Available at SSRN: https://ssrn.com/abstract=1306264 or http://dx.doi.org/10.2139/ssrn.1306264

Thor O. Thoresen (Contact Author)

Statistics Norway - Research Department ( email )

Kongens Gt. 6
PO Box 8131 Dep
N-0033 Oslo
Norway

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Elin Halvorsen

Statistics Norway - Research Department ( email )

Akersveien 26
Postboks 2633 St. Hanshaugen
Oslo, Oslo 0131
Norway

University of Oslo - Department of Economics

Norway

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