<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</abstract>

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.

Identity and Private Transfers of Time and Money

Central European Economic Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Identity and Private Transfers of Time and Money"}

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...

Identity and Private Transfers of Time and Money

Published Online: Sep 07, 2022

Page range: 191 - 218

DOI: https://doi.org/10.2478/ceej-2022-0012

Keywords
private transfers, intergenerational transfers, emotional proximity, confidant network, kinship

© 2022 Anna Nicińska, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Identity and Private Transfers of Time and Money

Published Online: Sep 07, 2022

Page range: 191 - 218

DOI: https://doi.org/10.2478/ceej-2022-0012

Keywordsprivate transfers, intergenerational transfers, emotional proximity, confidant network, kinship

© 2022 Anna Nicińska, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
private transfers, intergenerational transfers, emotional proximity, confidant network, kinship