Intergenerational Transfers Defy Altruism Assumptions, Reshaping Family Dynamics
Altruism plays a key role in intergenerational transfers, where parents give to their children. Even if parents become less altruistic towards their children, transfers still happen. Surprisingly, when children become more altruistic towards their parents, transfers to children can decrease at first, then increase beyond a certain level. This goes against the common belief that transfers are solely driven by parental altruism towards children.