Compensatory inter vivos gifts

S. Hochguertel, H. Ohlsson

Research output: Contribution to JournalArticleAcademicpeer-review

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. © 2009 John Wiley & Sons, Ltd.
LanguageEnglish
Pages993-1023
Number of pages30
JournalJournal of Applied Econometrics
Volume24
DOIs
Publication statusPublished - 2009

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parents
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public finance
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retirement
macroeconomics
savings
regression
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Cite this

Hochguertel, S. ; Ohlsson, H. / Compensatory inter vivos gifts. In: Journal of Applied Econometrics. 2009 ; Vol. 24. pp. 993-1023.
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Compensatory inter vivos gifts. / Hochguertel, S.; Ohlsson, H.

In: Journal of Applied Econometrics, Vol. 24, 2009, p. 993-1023.

Research output: Contribution to JournalArticleAcademicpeer-review

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AU - Hochguertel, S.

AU - Ohlsson, H.

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AB - 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. © 2009 John Wiley & Sons, Ltd.

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JO - Journal of Applied Econometrics

T2 - Journal of Applied Econometrics

JF - Journal of Applied Econometrics

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