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Shaping intergenerational relationships the demonstration effect

Jellal, Mohamed and wolff, François charles (2000): Shaping intergenerational relationships the demonstration effect. Published in: Economics Letters , Vol. 68 (2,


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According to the demonstration effect theory, parents make intergenerational transfers to their elders in order to elicit a symmetric future behavior from their children. In this paper we show that upstream transfers are expected to increase with low returns from alternative financial assets and with the donor’s life expectancy. The latter effect creates a greater incentive for daughters to care for parents.

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