Presentacion

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• Mums and their Sons Dads and their Daughters
  Panel Data Evidence of Interdependent Marginal
  Utilities across 14 EU Countries
• José Alberto Molina, María Navarro and Ian
  Walker
• University of Zaragoza, Spain
• University of Warwick, UK
• EPUNet Conference Barcelona, May 9th 2006

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AIM OF THE PAPER
Estimate the extent of altruism between parents
and children
Why?
Literature Altonji, J. , F. Hayashi, and L.
Kotlikoff (AER 1992, 1995, 1996) Schwarze
(2004), Schwarze and Winkelmann (2005),
Winkelmann (2005)
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OUTLINE

• Simple Theoretical Background
• Data
• Econometric Models
• Results
• Conclusions

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Simple Theoretical Background
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DATA
How satisfied are you with your present financial
situation? - child data censored by leaving home
European Community Household Panel ECHP
(1994-2001)
14 EU countries
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Structure of households in ECHP
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Mean satisfaction levels samples with any
children
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Mean Satisfaction Levels comparing leavers with
stayers before leaving
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Siblings
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Mean satisfaction levels samples with 2
children
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ECONOMETRIC MODELS
Random Effects Ordered Probit Model
Parametric Ordered Probit Model with Multiple
Random Effects
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Altruism parameter for Fathers
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Altruism parameter for Mothers
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OTHER RESULTS
Fathers less altruistic towards step children
than natural - but not significant Mothers much
sensitive than fathers to income shocks Married
or cohabiting Mothers more income
satisfied Negative effect of Family Size in
income satisfaction on both Highly significantly
positive effect of the household owning the house
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GLLAMM
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Estimated altruism parameters all children
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Fathers money metric, Oswald (2002, 2004)
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Mothers money metric
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Estimated money measures (as of parent income )
of the value of a 1 std dev change in child
satisfaction
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Fathers and Mothers money () metric (GLLAMM)
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Fathers and Mothers money () metric (GLLAMM)
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CONCLUSIONS
Strong parental altruism More so in Southern
Europe Not religion Ireland also low Mothers
seem more altruistic than fathers Fathers seem
more altruistic towards their daughters than
sons Mothers seem more altruistic towards their
sons in some countries but the pattern is less
clear
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