Compensatory Inter Vivos Gifts

TitleCompensatory Inter Vivos Gifts
Publication TypeJournal Article
Year of Publication2009
AuthorsHochguertel, S, Ohlsson, H
JournalJournal of Applied Econometrics
Volume24
Issue6
Pagination993-1023
Call Numbernewpubs20100129_JAE.pdf
KeywordsAdult children
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 censored regression models with nested multilevel error components. First, we interpret our findings that inter vivos transfers from parents to children are gifts, rather than temporary help to overcome liquidity constraints. Second, inter vivos gifts are compensatory in the sense that lifetime poorer children will receive higher transfers than their lifetime richer siblings. Third, inter vivos gifts do not, however, make up the entire difference in lifetime incomes.

Endnote Keywords

Altruism/Transfers/Gifts

Endnote ID

6581

Citation Key7291