The Crowding-Out Effect of Private Transfers through Public Transfers: Focusing on Elderly Households in Metropolitan Areas and Non-Metropolitan Areas

2019 ◽  
Vol 23 (2) ◽  
pp. 359-379
Author(s):  
Hyunjoo Chang
Keyword(s):  
Metropolitan Areas ◽  
Crowding Out ◽  
Public Transfers ◽  
Elderly Households ◽  
Private Transfers

Income Transfers to the Elderly in Korea and Taiwan

2001 ◽  
Vol 30 (1) ◽  
pp. 81-93 ◽  
Author(s):  
HUCK-JU KWON
Keyword(s):  
Public Policy ◽  
The Elderly ◽  
Living Standard ◽  
Policy Intervention ◽  
Maintenance Policy ◽  
Income Transfers ◽  
Public Transfers ◽  
Elderly Households ◽  
Full Operation ◽  
Private Transfers

This article analyses income transfers to elderly households in Korea and Taiwan in order to find out to what extent income maintenance policy contributes to the income of elderly households in these countries. It also examines private transfers to those households since we need to see the outcome of public policy in the broad picture of welfare mix. The article argues that private transfers play a bigger role than public transfers for elderly households. The poorer households are more dependent on private transfers. Nevertheless, private transfers failed to help the elderly escape poverty. It shows that elderly households in general and single- and couple-only households in particular are far more prone to poverty that the general population. Although state pensions are expected to play a bigger role in the future after coming into full operation, public policy has so far failed to improve the living standard of the elderly. This outcome of the research calls for urgent policy intervention to protect the elderly in the wake of the economic crisis in Korea and the massive earthquake in Taiwan.

DID PUBLIC CASH TRANSFER CROWD OUT INTER-HOUSEHOLD TRANSFERS IN INDONESIA? EVIDENCE FROM "BANTUAN LANGSUNG TUNAI /BLT"

INFO ARTHA ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 67-84
Author(s):  
Corry Wulandari ◽  
Nadezhda Baryshnikova
Keyword(s):  
Cash Transfer ◽  
Poor People ◽  
Crowding Out ◽  
Transfer System ◽  
Transfer Program ◽  
Exact Matching ◽  
The Public ◽  
Indonesia Family Life Survey ◽  
Public Transfers ◽  
The Government

In 2005 the Government of Indonesia introduced an unconditional cash transfer program called the ‘Bantuan Langsung Tunai’ (BLT), aimed at assisting poor people who were suffering from the removal of a fuel subsidy. There are concerns, however, that the introduction of a public transfer system can negatively affect inter-household transfers through the crowding-out effect, which exists when donor households reduce the amount of their transfers in line with public transfers received from the government. The poor may not therefore have received any meaningful impact from the public cash transfer, as they potentially receive fewer transfers from inter-household private donors. For the government to design a public transfer system, it is necessary to properly understand the dynamics of private transfer behaviour. Hence, this study evaluates whether there exists a crowding-out effect of public transfers on inter-household transfers in Indonesia.Using data from the Indonesia Family Life Survey (IFLS) and by applying Coarsened Exact Matching (CEM) and Difference-in-differences (DID) approaches, this study found that the likelihood to receive transfers from other family members (non-co-resident) reduces when the household receives BLT. However, there is no significant impact of BLT on transfers from parents and friends.

scholarly journals Population aging and the historical development of intergenerational transfer systems

Genus ◽  
2020 ◽  
Vol 76 (1) ◽  
Author(s):  
Ronald Lee
Keyword(s):  
Older People ◽  
Population Aging ◽  
Intergenerational Transfers ◽  
The Elderly ◽  
Intergenerational Transfer ◽  
Agricultural Revolution ◽  
Public Transfers ◽  
Working Age ◽  
Social Sharing ◽  
Private Transfers

Abstract From our evolutionary past, humans inherited a long period of child dependency, extensive intergenerational transfers to children, cooperative breeding, and social sharing of food. Older people continued to transfer a surplus to the young. After the agricultural revolution, population densities grew making land and residences valuable assets controlled by older people, leading to their reduced labor supply which made them net consumers. In some East Asian societies today, elders are supported by adult children but in most societies the elderly continue to make private net transfers to their children out of asset income or public pensions. Growing public intergenerational transfers have crowded out private transfers. In some high-income countries, the direction of intergenerational flows has reversed from downward to upwards, from young to old. Nonetheless, net private transfers remain strongly downward, from older to younger, everywhere in the world. For many but not all countries, projected population aging will bring fiscal instability unless there are major program reforms. However, in many countries population aging will reduce the net cost to adults of private transfers to children, partially offsetting the increased net costs to working age adults for public transfers to the elderly.

scholarly journals An Experimental Study on the Crowding-out Effect of Public Transfers in a Model with Multiple Families

2000 ◽  
Author(s):  
Werner Guth ◽  
Theo Offerman ◽  
Jan J.M. Potters ◽  
Martin Strobel ◽  
Harrie A.A. Verbon
Keyword(s):  
Experimental Study ◽  
Crowding Out ◽  
Public Transfers

Can poverty alleviation programs crowd-in private support? Short- and Middle-Run Effects of a Conditional Cash Transfer Program on Inter-Household Transfers

2020 ◽  
pp. 1-22 ◽  
Author(s):  
SANDRA GARCÍA ◽  
JORGE CUARTAS
Keyword(s):  
Developing Countries ◽  
Risk Sharing ◽  
Conditional Cash Transfer ◽  
Cash Transfer ◽  
Transfer Program ◽  
Public Transfers ◽  
Short Run ◽  
Crowd Out ◽  
Private Support ◽  
Private Transfers

Abstract Conditional cash transfer (CCT) programs have become an important component of social assistance in developing countries. CCTs, as well as other cash subsidies, have been criticized for allegedly crowding out private transfers. Whether social programs crowd out private transfers is an important question with worrisome implications, as private support represents an important fraction of households’ income and works as a risk sharing mechanism in developing countries. Furthermore, empirical evidence on the effect of public transfers on private transfers is mixed. This paper contributes to the literature by using a unique dataset from the quasi-experimental evaluation of a CCT in Colombia and an empirical strategy that allows us to correct for pre-existing differences between treated and control groups. Our results suggest that the public transfer did not crowd out private transfers, neither in the short-run nor in the middle-run. Instead, it increased the probability of receiving support in cash, in kind, and in non-paid labor from different private sources by approximately 10 percentage points. Moreover, we find that the monetary value of private transfers increased by 32-38% for treated households.

scholarly journals DO WELFARE RECEIPTS CROWD OUT PRIVATE TRANSFERS FROM FAMILIES AND FRIENDS? EVIDENCE FROM PANEL DATA IN CHINA

2019 ◽  
Vol 3 (Supplement_1) ◽  
pp. S339-S340
Author(s):  
Yalu Zhang
Keyword(s):  
Older Adults ◽  
Panel Data ◽  
Catastrophic Health Expenditure ◽  
Dynamic Relationship ◽  
Family Transfers ◽  
Rural And Urban ◽  
Public Transfers ◽  
Crowd Out ◽  
Private Transfers ◽  
Rural Older Adults

Abstract Many countries are undergoing an unprecedented challenge to provide financial support to the older generation and guarantee their livelihood and wellbeing. China is no exception. Rural older adults in China have been becoming even more vulnerable to lack of care and inadequate financial resources as the growth of urbanization and labor migration has intensified. Therefore, it becomes increasingly difficult to follow the traditional family support model for the aged. Using the panel data of the China Health and Retirement Longitudinal Study 2011, 2013, and 2015 and a system generalized methods of moment (GMM), this paper examined the dynamic relationship between welfare receipts and monetary transfers from families and friends among rural and urban older adults (n=9,496) in China. The results show that the welfare receipts do not induce any “crowd-out” or “crowd-in” effects on rural older adults’ private transfer receipts. The incidence and amount of private transfers that occurred among rural older adults are more likely to be determined by the private transfers they received in prior waves. The intensity of catastrophic health expenditure itself does not affect the occurrence and size of private transfers. This study, on the one hand, confirms that among rural recipients, public transfers do not substitute private transfers, which most of the policymakers have long been concerned about. However, on the other hand, it also reveals the shortcoming of current public transfer policies—the generosity of public transfers does not enable rural older adults to be financially independent of intra-family transfers.

scholarly journals EFEK DISINSENTIF PROGRAM RASKIN DAN PENGARUHNYA TERHADAP TRANSFER PANGAN ANTARGENERASI

2012 ◽  
Vol 13 (1) ◽  
pp. 146
Author(s):  
Mohtar Rasyid
Keyword(s):  
Negative Impact ◽  
Safety Net ◽  
Crowding Out ◽  
Transfer Scheme ◽  
Household Level ◽  
Indonesia Family Life Survey ◽  
Public Transfers ◽  
Private And Public ◽  
Disincentive Effect ◽  
Instrumental Variables Approach

The objective of this research was to investigate disincentive and crowding-out effect food aid program (public transfer) in household level. Beside the humanitarian roles, there are widespread sceptisms of food assistance regarding its possible influence on disincentive to work and on crowding out of private transfer (inter-household or intergeneration transfer). Based on Indonesia Family Life Survey data and using instrumental variables approach, this paper estimates disincentive effect and crowding out effect “Rice Program for Poor Families” (Raskin) on intergenerational food transfer (child to parents transfer). This research observe significant negative impact on total household income. The decline in income mostly happened through a reduction in head household worker. The paper also find indication of crowding out relation between private and public transfers. It suggests that the Indonesian government should have designed its public transfer scheme carefully in order to improve the effectiveness and efficiency of its social safety net programs.

scholarly journals Private and public transfers: substitute or complement?

2021 ◽  
Vol 5 (2) ◽  
pp. 1-15
Author(s):  
Anna A. Mironova ◽  
Lydia A. Shenshina
Keyword(s):  
Logistic Regression ◽  
Public Transfers ◽  
Private And Public ◽  
Monitoring Survey ◽  
Social Transfers ◽  
Crowd Out ◽  
To Receive ◽  
The Relationship ◽  
Private Transfers

The paper analyzes the relationship between private and public social transfers in Russia. The research relies on the data from the Russian Longitudinal Monitoring Survey (RLMS-HSE) carried out by the Higher School of Economics in 1994–2018. The household is the unit of the analysis, the method of logistic regression is applied. The study has shown that when a household receives public social transfers, it is less likely to receive private transfers. So, the findings appear to bear out the hypothesis that public transfers crowd out private transfers in Russia.

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