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Happiness functions with preference interdependence and heterogeneity: the case of altruism within the family


Bruhin, Adrian; Winkelmann, Rainer (2009). Happiness functions with preference interdependence and heterogeneity: the case of altruism within the family. Journal of Population Economics, 22(4):1063-1080.

Abstract

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.

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.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:October 2009
Deposited On:20 Nov 2008 16:06
Last Modified:05 Apr 2016 12:30
Publisher:Springer
ISSN:0933-1433
Additional Information:The original publication is available at www.springerlink.com
Publisher DOI:10.1007/s00148-008-0198-3
Permanent URL: http://doi.org/10.5167/uzh-4369

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