Theories of serial flow in intergenerational transfers

Abstract

Recent improvements in the economic position of the elderly population necessitate a more thorough understanding of the serial flow of economic supports from preceding to succeeding generations. Five theories which might extend our understanding of the decision rules employed in intergenerational transfers are discussed. They are: social exchange theory, the kin selection theory of altruism, human capital theory, social constructivist theory, and rational transfers theory. The underlying assumptions of these theories are presented and compared, and models of intergenerational transactions are developed. Comparative studies are recommended in order to gain deeper insights into the relative strengths and weaknesses of these different views of relationships between the generations.