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A Novel Strategy to Assess Motives Behind Private Transfers

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  • Kevin Luo

Abstract

This study surveys the conventional methods and their limitations in assessing motives for private transfers. Based on the concept of "effective altruism" - a genuine altruist offers help instead of demanding, this study proposes a normative and discriminative strategy to help distinguish the transfer motives, focusing on whether income transfer persists over time. Its application to Chinese interfamily transfers reveals that altruistic motives do exist but play an insignificant role at the aggregate level.

Suggested Citation

  • Kevin Luo, 2020. "A Novel Strategy to Assess Motives Behind Private Transfers," Prague Economic Papers, Prague University of Economics and Business, vol. 2020(2), pages 207-225.
    • Handle: RePEc:prg:jnlpep:v:2020:y:2020:i:2:id:730:p:1-17
    DOI: 10.18267/j.pep.730
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    References listed on IDEAS

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    1. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-1198, December.
    2. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1997. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1121-1166, December.
    3. Schokkaert, Erik, 2006. "The Empirical Analysis of Transfer Motives," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 2, pages 127-181, Elsevier.
    4. Johannes Schwarze & Rainer Winkelmann, 2011. "Happiness and altruism within the extended family," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(3), pages 1033-1051, July.
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    More about this item

    Keywords

    Private transfer; transfer motives; altruism; egoism; interfamily transfer;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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