Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86537
Authors: 
Hochguertel, Stefan
Ohlsson, Henry
Year of Publication: 
2007
Series/Report no.: 
Tinbergen Institute Discussion Paper 07-074/3
Abstract: 
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.
Subjects: 
inter vivos gifts
compensatory transfers
liquidity constraints
altruism
exchange
JEL: 
D10
D64
D91
Document Type: 
Working Paper

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