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We provide the first analysis of altruism in networks. Agents are embedded in a fixed network and care about the well-being of their network neighbors. Depending on incomes, they may provide financial support to their poorer friends. We study the Nash equilibria of the resulting game of transfers. We show that equilibria maximize a concave potential function. We establish existence, uniqueness of equilibrium consumption, and generic uniqueness of equilibrium transfers. We characterize the geometry of the network of transfers and highlight the key role played by transfer intermediaries. We then study comparative statics. A positive income shock to an individual benefits all. For small changes in incomes, agents in a component of the network of transfers act as if they were organized in an income-pooling community. A decrease in income inequality or expansion of the altruism network may increase consumption inequality.

Conditional cash transfer (CCT) programs have become an important component of social assistance in developing countries. CCTs, as well as other cash subsidies, have been criticized for allegedly crowding out private transfers. Whether social programs crowd out private transfers is an important question with worrisome implications, as private support represents an important fraction of households’ income and works as a risk sharing mechanism in developing countries. Furthermore, empirical evidence on the effect of public transfers on private transfers is mixed. This paper contributes to the literature by using a unique dataset from the quasi-experimental evaluation of a CCT in Colombia and an empirical strategy that allows us to correct for pre-existing differences between treated and control groups. Our results suggest that the public transfer did not crowd out private transfers, neither in the short-run nor in the middle-run. Instead, it increased the probability of receiving support in cash, in kind, and in non-paid labor from different private sources by approximately 10 percentage points. Moreover, we find that the monetary value of private transfers increased by 32-38% for treated households.

This paper exploits a liquidity shock from a welfare program in Brazil to investigate the role of financial constraints, in opposition to general equilibrium mechanisms, in explaining entrepreneurship. Previous research focuses exclusively on how liquidity changes recipients’ behavior through direct effects on reducing constraints. However, liquidity shocks may also produce spillovers from recipients to others and thereby indirectly affect entrepreneurial decisions. This paper presents a method for decomposing the liquidity shock into direct effects associated with relieving individual constraints, and indirect effects associated with spillovers to other individuals. Results suggest that the program, which assists 20 percent of Brazilian households, increased the number of small entrepreneurs by 10 percent. However, this increase is entirely driven by the indirect effect. Further tests suggest that this effect is associated with an increase in private transfers between households. Thus, entrepreneurship tends to respond more to the interaction between households than to financial constraints.

How do private transfers differ by race and ethnicity, and do such differences explain the racial and ethnic disparity in wealth? Using the Panel Study of Income Dynamics, this study examines private transfers by race and ethnicity in the United States and explores a causal relationship between private transfers and wealth. Panel data and a family-level fixed-effect model are used to control for the endogeneity of private transfers. Private transfers in the form of financial support received and given from extended families and friends, as well as large gifts and inheritances, are examined. We find that African Americans and Hispanics (both immigrant and nonimmigrant) receive less in both types of private transfers than whites. Large gifts and inheritances, but not net financial support received, are related to wealth increases for African American and white families. Overall, we estimate that the African American shortfall in large gifts and inheritances accounts for 12 % of the white-black racial wealth gap.

We introduce the perspective of identity economics to a formal model of rational choice of private transfers to examine the impact of geographical proximity on optimal time and money transfers within and outside of families. We argue that identities affect private transfers through the internalization of social norms governing informal support and incorporate in the formal model the fact that time, unlike money transfers, demands face-to-face presence. We solve the utility maximization problem and derive propositions concerning factors affecting transfers. Then we test them empirically using longitudinal and cross-sectional data from the Survey on Health, Ageing and Retirement in Europe. We address the possible endogeneity with instrumental variables. Empirical results based on transfers from family members and unrelated individuals are suggestive of a significant role of identity in private transfers in line with the theoretical model. We find that geographical proximity enhances time, but not money, transfers. Our results yield evidence for a stronger role of emotional rather than genetic proximity in interhousehold transfers.

This article explores the factors that account for variation in remittance flows. Why do some immigrants send much more money to their country of origin than others? This is a question that, in the aggregate, has implications for national economies and migration-related policy. The analysis departs from the classic studies of remittances and considers how the context of contemporary migration in Europe is likely to affect remittance patterns. Possible influences on remittance-sending are disaggregated into nine domains, and each is discussed with reference to theoretical arguments and empirical findings. The temporal aspects of remittance-sending are discussed separately. The final section of the article considers implications of the micro-level analysis for aggregate remittance flows and policy. It is argued that the focus on altruism versus self-interest in the literature has partly diverted attention from explaining the actual variation that is important in a policy perspective.

The paper analyzes the relationship between private and public social transfers in Russia. The research relies on the data from the Russian Longitudinal Monitoring Survey (RLMS-HSE) carried out by the Higher School of Economics in 1994–2018. The household is the unit of the analysis, the method of logistic regression is applied. The study has shown that when a household receives public social transfers, it is less likely to receive private transfers. So, the findings appear to bear out the hypothesis that public transfers crowd out private transfers in Russia.

Background The prevalence and economic burdens of musculoskeletal disorders (MSD) are serious in rural China. In addition to formal support, health-related private transfers (HRPTs), including adult children transfers (ACTs), as well as relatives and friends transfers (RFTs), are very common in rural China. We explored the relationship between HRPTs and MSD treatment compliance and the heterogeneity of this relationship in terms of family socioeconomic status. Methods A questionnaire survey was carried out in Enshi, Hubei, China by stratified random sampling in July 15–25,2018. A total of 2679 questionnaires on the economic burden of chronic diseases were collected. We deleted two questionnaires with missing data. The data was described using the mean and proportion. The Chi-square test and one-way ANOVA was used to compare each independent variable in the three groups, and ordered probit regression was used to analyse the relationship between each factor and treatment compliance. The heterogeneity of the effect was examined by group regression analysis of the samples with or without poverty. Results In total, 853 samples with MSD were included in the analysis. The age was 70.27 ± 6.97 (mean +/− sd) years old, and the ADL was 11.64 ± 0.12, with more respondents being female (56.15%), partnered (73.51%), primary school educated (45.96%), working (57.91%), feeling poor in health (55.69%), lived alone or with a spouse (54.75%). Respondents with both ACTs and RFTs had better treatment compliance, and this was significant only in poor populations ( p  < 0.05). Under the same HRPTs’ condition, respondents who more compliant with MSD treatment were female ( p  < 0.01), had primary school education ( p  < 0.05), has self-reported poor ( p  < 0.01) and very poor ( p  < 0.05) health, had a high level of physical disability ( p  < 0.01), and were living with their children and grandchildren ( p  < 0.05). Respondents with more chronic diseases had poorer treatment compliance ( p  < 0.05). Conclusions Only those in poverty who both have ACTs and RFTs are likely to have better treatment compliance for MSD. Promoting a culture of filial piety and fostering harmonious interpersonal relationships, policies that focus on groups that lack social support, and general formal support are essential for sustained access to treatment for MSD.

Orientation South Africa is a country where the vast majority of residents experience inequality, poverty and deprivation on a daily basis. For many black South Africans, their experience includes the expectation to financially support extended family. Research purpose This 'black tax' provides the government with an opportunity to redistribute wealth through taxation provisions. The study's purpose is to consider whether South African taxation legislation currently provides for black tax and if not, to provide suggested improvements. Motivation for the study Whilst South Africa already has a social grant system in place, there is a need to account for varying levels of taxpayer responsibility and to encourage less dependence on the government. Research approach/design and method Using a doctrinal research methodology, the authors collated relevant legislation and judicial precedents applied in South Africa with respect to supporting extended family and compared these to the taxation systems in the United States of America (USA), Brazil and Nigeria. Main findings The findings indicate that the current South African taxation legislation does not provide for supporting extended family, including black tax, and the US dependent exemption or rebate is a potential option for consideration in South Africa. Practical/managerial implications Taxpayers should encourage the South African government to develop a discussion document to encourage wider discourse. Contribution/value-add The study makes an important contribution to the debate on changing taxation legislation to ensure income and wealth redistribution.

Over the past several decades, the private sector has assumed a larger role in developing improved technology for food and agriculture. Private companies fund nearly all food processing research and development (R&D) and perform a growing share of production-oriented R&D for agriculture. In addition, institutional partnerships for public–private research collaboration are growing in the United States and other countries. This article outlines the major forces driving these changes and offers an interpretive framework to explore some of the implications for the volume and nature of research performed by the public and private sectors. One of the critical issues is whether public agricultural research complements and thereby stimulates additional private agricultural R&D investments. Another important issue concerns the role and contribution of alternative public–private partnership arrangements. To date, changes in the institutional structure of public and private agricultural research have outpaced systematic investigation, and new theoretical and empirical research is needed to help guide policy and address key societal challenges, such as climate change, clean energy, water scarcity, food safety, and health.