Inter-vivos transfers and exchange.(link between informal care and economic motives)

From: Southern Economic Journal | Date: July 1, 2006| Author: | Copyright information

1. Introduction

Economists have long looked for evidence of exchange or altruism as a motive for bequests. Altruism is when parents equalize their children's marginal utility of wealth by giving more bequests to their poorer children (Wilhelm 1996; Altonji, Hayashi, and Kotlikoff 1997; Sloan, Zhang, and Wang 2002). Exchange is when parents give more bequests to the child or children who provide more informal care and attention. The theoretical literature on bequests argues that exchange is an important motivation for bequests (Bernheim, Schleifer, and Summers 1985; Bernheim ... 

<0.0001   Good instruments 
 
Table 3. Logit Regression Results to Predict Inter-vivos (IV) 
Transfers Conditional on at Least One Transfer, Child-level Data 
 
                                 Logit Models 
 
                                            FE (Fixed 
Variable                       Basic         Effects) 
 
Constant                      -2.10 ** 
                               (0.62) 
Endogenous 
  Informal care               0.77 **        1.10 ** 
                               (0.22)         (0.28) 
                              [0.163]        [0.116] 
  Predicted residual 
    from first stage 
 
Household characteristics 
  Age                        0.0421 **        0.0728 
                              (0.0083)       (0.0583) 
  Non-white                   -0.35 ** 
                               (0.14) 
  Married                      0.126          -0.739 
                              (0.097)        (0.756) 
  Number of children         -0.204 ** 
                              (0.027) 
  Education                    -0.015 
                              (0.016) 
  Poor health status            0.01          -0.52 
                               (0.19)         (1.31) 
  Income and 
    wealth quartiles        6 variables    6 variables 
  Bequeathable wealth           0.31          -0.29 
                               (0.21)         (0.64) 
  Wave 2                       -0.31         -1.17 ** 
                               (0.19)         (0.32) 
 
Child characteristics 
  Age                        -0.0113 *      -0.0189 ** 
                              (0.0054)       (0.0073) 
  Stepchild                   -0.62 **       -1.25 ** 
                               (0.15)         (0.20) 
  Number of children          0.051 *        0.109 ** 
                              (0.023)        (0.030) 
  Education (years)           0.068 **       0.085 ** 
                              (0.013)        (0.020) 
  Live>

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