Economic Situations and Social Distance: Taxation and Donation
By Alexander Brandt
Abstract:
This experimental study evaluated the effects of two common economic situations –
taxation and donation – on the social distance between participants in the situations, an original
effect of interest that is the opposite of prior research. This study employed a novel survey
framework, in which subjects gave money to others in the economic situations and socially
judged recipients of their money. Findings mostly did not support predictions that the economic
situations would differently affect social distance, but the novel framework enabled an effective
test of the effect of economic situations on social distance and is a major contribution to the field.
Professor Rachel E. Kranton, Faculty Advisor
Professor Scott A. Huettel, Faculty Advisor
Professor Grace Kim, Seminar Advisor
JEL classification: C91; D64; D89; D90
Are the Chinese Altruistic? Explaining Motives behind Chinese Intergenerational Transfers using the Strategic Bequest Motive
By Lucy Yin
Two main competing theories regarding intergenerational transfers from adult children to elderly parents exist: the altruism model and the exchange model. The strategic bequest motive supports the exchange model in claiming parents with bequeathable wealth will incentivize children to devote more resources to parents in order to receive a larger bequest. I use data from the Chinese Longitudinal Healthy Longevity Survey to assess whether children increase monetary or time transfers to elderly parents with bequeathable property ownership. My findings suggest an altruistic model at play, which contradicts most findings in East Asian countries but may be a trend found in other developing countries.
Advisor: Frank Sloan, Michelle Connolly | JEL Codes: D14, D64 | Tagged: Bequests, Altruism, Intergenerational Transfers
