Identity and Private Transfers of Time and Money

Nicińska Anna ()
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Nicińska Anna: University of Warsaw, Faculty of Economic Sciences, Długa 44/50, 00-921 Warsaw, Poland

Central European Economic Journal, 2022, vol. 9, issue 56, 191-218

Abstract: We introduce the perspective of identity economics to a formal model of rational choice of private transfers to examine the impact of geographical proximity on optimal time and money transfers within and outside of families. We argue that identities affect private transfers through the internalization of social norms governing informal support and incorporate in the formal model the fact that time, unlike money transfers, demands face-to-face presence. We solve the utility maximization problem and derive propositions concerning factors affecting transfers. Then we test them empirically using longitudinal and cross-sectional data from the Survey on Health, Ageing and Retirement in Europe. We address the possible endogeneity with instrumental variables. Empirical results based on transfers from family members and unrelated individuals are suggestive of a significant role of identity in private transfers in line with the theoretical model. We find that geographical proximity enhances time, but not money, transfers. Our results yield evidence for a stronger role of emotional rather than genetic proximity in interhousehold transfers.

Keywords: private transfers; intergenerational transfers; emotional proximity; confidant network; kinship (search for similar items in EconPapers)
JEL-codes: D64 J14 J19 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ceuecj:v:9:y:2022:i:56:p:191-218:n:1

DOI: 10.2478/ceej-2022-0012

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