Solidarity, Transfers, and Poverty

Antonia Díaz () and E. Cristina Echevarria

Review of Development Economics, 2002, vol. 6, issue 3, pages 337-50

Abstract: There is abundant evidence that inter-vivos transfers are more important in low-income countries than in industrialized countries. The authors use a new specification of altruism to explain this stylized fact. Under this specification, individuals feel altruistically towards other individuals genetically related to them. However, they worry about them only when their relatives' consumption falls below a certain level. Simulation results mimic the stylized facts concerning the relation between inter-vivos transfers and income. Copyright 2002 by Blackwell Publishing Ltd

Date: 2002

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