Happiness functions with preference interdependence and heterogeneity: the case of altruism within the family
نویسندگان
چکیده
This study investigates the prevalence and extent of altruism by examining the relationship between parents’ and their adult children’s subjective well-being in a data set extracted from the German Socio-Economic Panel. To segregate the share of parents with altruistic preferences from those who are selfish, we estimate a finite mixture regression model. We control for various sources of potential bias by taking advantage of the data’s panel structure. To validate our modeling approach, we show that predicted altruists indeed make higher average transfer payments.
منابع مشابه
Happiness and altruism within the extended family
We propose a direct measure of altruism between parents and adult children, using survey data on happiness from the German Socio-Economic Panel for the years 2000–2004. The question of altruism within families has policy relevance, for example, to understand whether public transfers crowd out private ones. Previous empirical evidence, based on observed transfer behavior, has failed to establish...
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