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Solidarity, Transfers, and Poverty

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  • Antonia Díaz
  • Cristina Echevarria

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.

Suggested Citation

  • Antonia Díaz & Cristina Echevarria, 2002. "Solidarity, Transfers, and Poverty," Review of Development Economics, Wiley Blackwell, vol. 6(3), pages 337-350, October.
    • Handle: RePEc:bla:rdevec:v:6:y:2002:i:3:p:337-350
    DOI: 10.1111/1467-9361.00159
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