Explaining Gift Behavior: Altruism or Social Norms? Theory and Evidence from Romania

• This paper examines the motives behind inter-household gift transfers. A theoretical model is developed where, besides altruistic income redistribution, social norms (related to e.g. customs and traditions) motivate gift giving. We apply the model to Romania, a country where private gifts are very important, and find evidence for social norms being the main motive for gift giving. However, different norms determine gift transfers to poor and non-poor households. Moreover, we find no crowding-out effects from public pensions on private gifts.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

Transfers

altruism

reciprocity

Romania

social norms. JEL: Z13

J14

R20

I30

H55

D10

Publication and Content Type

vet (subject category)

rap (subject category)