Motives for Private Gift Transfers: Theory and Evidence from Romania

Andreea Mitrut () and Katarina Nordblom ()
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Andreea Mitrut: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Postal: Box 640, SE 40530 GÖTEBORG

No 262, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: In many developing and transitional countries, inter-household transfers in general and gifts in particular are sizable and very important. We use unique Romanian data that enables us, contrary to most previous studies, to isolate pure gifts from other kinds of private transfers and to study them in detail. We find that social norms are important for explaining the occurrence of gifts and that the rich and the poor receive to the same extent. However, we find different motives for gifts to the rich and the poor. Middle- and high-income households are part of reciprocal networks and receive more the higher their incomes and the more they give to others. Although the poor may be excluded from reciprocal networks, they still receive, since there is a social duty norm to give.

Keywords: Gifts; Transfers; altruism; reciprocity; Romania; social norms (search for similar items in EconPapers)
JEL-codes: D10 H55 I30 J14 R20 Z13 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2007-09-04, Revised 2008-04-30
New Economics Papers: this item is included in nep-cbe, nep-evo, nep-net, nep-soc and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Mitrut, Andreea and Katarina Nordblom, 'Social Norms and Gift Behavior: Theory and Evidence from Romania' in European Economic Review, 2010, pages 998-1015.

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