Compensatory Inter Vivos Gifts

Stefan Hochguertel () and Henry Ohlsson ()

No 07-074/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: 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.

Keywords: inter vivos gifts; compensatory transfers; liquidity constraints; altruism; exchange (search for similar items in EconPapers)
JEL-codes: D10 D64 D91 (search for similar items in EconPapers)
Date: 2007-09-24
View list of references View citations in EconPapers

Downloads: (external link)
http://www.tinbergen.nl/discussionpapers/07074.pdf (application/pdf)

Related works:
Working Paper: Compensatory Inter Vivos Gifts (2001)
Working Paper: Compensatory inter vivos gifts (2000)
Working Paper: Compensatory inter vivos gifts (2000)
Journal Article: Compensatory inter vivos gifts (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:dgr:uvatin:20070074

Access Statistics for this paper

More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute
Series data maintained by Walther Schoonenberg ().