- Modern economy Journal
- January 2013
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- In this paper, we analyze the role of income as a determinant of parents' care for children. We show that the answer depends on whether Altruism or Exchange motives are the factors that explain intergenerational transfers. We then de-velop a test to discriminate between these alternatives. Unlike previous approaches, this test focuses on measures of parents' efforts on child care that are essentially non-monetary. Using data from the United States, we find a negative relationship between family income and the frequency of children's emergency room utilization which cannot be ex-plained by several alternative controlling factors. In our framework, this is interpreted as evidence against the null of prominently altruistic behavior.
- intergenerational transfers; altruism; infant health demand