An Experimental Study in the Crowding-Out Effect of Public Transfers in a Model with Multiple Families

W. Güth, T.J.S. Offerman, J.J.M. Potters, M. Strobel, H.A.A. Verbon

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Abstract

We study an overlapping-generations experiment with multiple families in which redistributional transfers can take the form of support to the elderly or grants to children.Supporting the old is a purely inter-generational (intra-family) transfer, whereas grants to children also involve an element of intra-generational (inter-family) solidarity.Our treatment variable is the tax rate determining the amount of redistribution by means of the compulsory pension scheme.We investigate to which degree compulsory solidarity crowds out voluntary solidarity.We also consider whether voluntary solidarity relies more on grants to children or on support to the old aged, and the mechanisms which are used in eliciting transfers from family members from other generations.
Original languageEnglish
Place of PublicationTilburg
PublisherMicroeconomics
Number of pages29
Volume2000-54
Publication statusPublished - 2000

Publication series

NameCentER Discussion Paper
Volume2000-54

Fingerprint

Public transfers
Solidarity
Experimental study
Crowding-out effect
Tax rate
Pension scheme
Experiment
Redistribution
Crowd-out
Overlapping generations

Keywords

  • within-family transfers
  • overlapping generations
  • redistributive public-pension system
  • crowding out of private transfers
  • reciprocity

Cite this

Güth, W., Offerman, T. J. S., Potters, J. J. M., Strobel, M., & Verbon, H. A. A. (2000). An Experimental Study in the Crowding-Out Effect of Public Transfers in a Model with Multiple Families. (CentER Discussion Paper; Vol. 2000-54). Tilburg: Microeconomics.
Güth, W. ; Offerman, T.J.S. ; Potters, J.J.M. ; Strobel, M. ; Verbon, H.A.A. / An Experimental Study in the Crowding-Out Effect of Public Transfers in a Model with Multiple Families. Tilburg : Microeconomics, 2000. (CentER Discussion Paper).
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Güth, W, Offerman, TJS, Potters, JJM, Strobel, M & Verbon, HAA 2000 'An Experimental Study in the Crowding-Out Effect of Public Transfers in a Model with Multiple Families' CentER Discussion Paper, vol. 2000-54, Microeconomics, Tilburg.

An Experimental Study in the Crowding-Out Effect of Public Transfers in a Model with Multiple Families. / Güth, W.; Offerman, T.J.S.; Potters, J.J.M.; Strobel, M.; Verbon, H.A.A.

Tilburg : Microeconomics, 2000. (CentER Discussion Paper; Vol. 2000-54).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

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AU - Verbon, H.A.A.

N1 - Pagination: 29

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AB - We study an overlapping-generations experiment with multiple families in which redistributional transfers can take the form of support to the elderly or grants to children.Supporting the old is a purely inter-generational (intra-family) transfer, whereas grants to children also involve an element of intra-generational (inter-family) solidarity.Our treatment variable is the tax rate determining the amount of redistribution by means of the compulsory pension scheme.We investigate to which degree compulsory solidarity crowds out voluntary solidarity.We also consider whether voluntary solidarity relies more on grants to children or on support to the old aged, and the mechanisms which are used in eliciting transfers from family members from other generations.

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KW - crowding out of private transfers

KW - reciprocity

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Güth W, Offerman TJS, Potters JJM, Strobel M, Verbon HAA. An Experimental Study in the Crowding-Out Effect of Public Transfers in a Model with Multiple Families. Tilburg: Microeconomics. 2000. (CentER Discussion Paper).