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Compensatory inter vivos gifts* (2000)
| Citations: | 6 - 0 self |
BibTeX
@MISC{Hochguertel00compensatoryinter,
author = {Stefan Hochguertel and Henry Ohlsson},
title = {Compensatory inter vivos gifts*},
year = {2000}
}
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Abstract
Empirical studies of intergenerational transfers usually …nd that bequests are equally divided among heirs while inter vivos gifts tend to be compensatory. Using the 1992 and 1994 waves of the Health and Retirement Study, we …nd that only 4 % of parents who give, divide their gifts equally among their children. Estimating probit models, using family panels, we …nd that gifts are compensatory in the sense that a child is more likely to receive a gift if she works fewer hours and has lower income than than her brothers and sisters. These results carry over to the amounts given. Fixed e¤ects Tobit estimations show that the fewer hours a child works and the lower her income is, the more the parents give. Gifts are compensatory. The empirical results are, therefore, consistent with the predictions of the altruistic model of intergenerational transfers.
