Copyrights to papers in the Duke Economics Working Paper Archive
remain with the authors or their assignees. Archive users may
download papers and produce them for their own personal use, but
downloading of papers for any other activity, including reposting
to other electronic bulletin boards or archives, may not be done
without the written consent of the authors. It is the authors'
responsibility to notify the archive managers when they wish to
have the paper removed.
Duke Economics Working Paper #95-15
Upstream Intergenerational Transfers
Frank A. Sloan
and
Harold H. Zhang
Abstract
This study analyzes upstream intergenerational transfers from middle-ages
children to their elderly parents. We formulate a model in which the
middle-aged child transfers both money and time to an elderly parent,
based on an altruistic motive. We test the altruistic assumption
empirically and examine substitution between financial transfers and
time transfers using data from the Health and Retirement Survey (HRS).
Empirical results support the assumption that upstream transfers are
motivated by altruism, particularly financial transfers. Poor parents
receive more money. Overall, the results of time transfers provide less
strong support for our model. A child with a high way tends to transfer
money rather than time. Our findings on time transfers differ from
predictions of models based on exchange motives. Public subsidies
of nursing home care crowd out both private financial and time
transfers.
JEL: D64, I38, J14
Published in Southern Economic Journal, Vol. 69, No. 2, October 2002, pp. 363-380.