An experimental study on the crowding-out effect of public transfers in a model with multiple families

W. Gueth, T. Offerman and Jan Potters
Authors registered in the RePEc Author Service: Werner Güth ()

No 54, Discussion Paper from Tilburg University, Center for Economic Research

Abstract: We study an overlapping-generations experiment with multiple families in which redistributional transfers can take the form of support to the elderly or grants to children. Supporting the old is a purely inter-generational (intra-family) transfer, whereas grants to children also involve an element of intra-generational (inter-family) solidarity. Our treatment variable is the tax rate determining the amount of redistribution by means of the compulsory pension scheme. We investigate to which degree compulsory solidarity crowds out voluntary solidarity. We also consider whether voluntary solidarity relies more on grants to children or on support to the old aged, and the mechanisms which are used in eliciting transfers from family members from other generations.

Keywords: overlapping; generations (search for similar items in EconPapers)
JEL-codes: C91 H55 (search for similar items in EconPapers)
Date: 2000
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