Financial Transfers Research Articles

Early‐life disadvantage and parent‐to‐child financial transfers

AbstractObjectiveTo determine (1) how parental childhood disadvantage is associated with parent‐to‐child financial transfers for schooling and other unspecified purposes and (2) whether the association holds when parental socioeconomic status (years of education, family income, wealth) is considered.BackgroundCumulative inequality theory posits that early life disadvantage may not only adversely affect one's resource accumulation across the life course, but it may also shape one's ability to provide assistance to offspring.MethodData from the Panel Study of Income Dynamics were used to estimate zero‐inflated negative binomial regression models to predict the amount of parent‐to‐child transfers (N = 2364 for school transfers, N = 3618 for other transfers), controlling for parents' and children's sociodemographic factors. Childhood disadvantage score (0 as reference, 1, 2, 3, 4+) was constructed using 13 items that reflect the economic, psychosocial, environmental, and health domains of early life. The associations of each domain with financial transfers were also estimated.ResultsParents with 4+ disadvantages gave about $2200 less for schooling. Economic and environmental disadvantage lessened levels of school transfers, while environmental disadvantage decreased the odds of being a non‐provider of other transfers. The disparity in transfer amounts generally narrowed when the mediating role of parental socioeconomic status was accounted for.ConclusionHigher education has become one of the major mechanisms through which class stratification, social inequality, and health disparities ensue. Educational outcomes among current cohorts of young adults could have been shaped by the preceding generation's childhood through intergenerational exchanges.

Drivers and attitudes of public support for technological solutions to climate change in 30 countries

Abstract Some experts contend that addressing global climate challenges requires consideration of technologies such as Carbon Dioxide Removal (CDR) and, possibly, Solar Radiation Modification (SRM). Previous studies, primarily centered on the OECD region, have indicated that most of these technologies are contentious, eliciting low levels of public support. By conducting a set of nationally representative surveys examining seven CDR and three SRM technologies in 30 countries, we show that public skepticism is most prominent in wealthier countries. Respondents from these countries express lower confidence in the potential of science and technology to address climate change, diminished trust in industry, and expect to experience less personal harm from climate change. At the same time, there are many countries, not previously studied, where the levels of support for CDR and SRM are relatively high. As middle-income countries, their capability to effectively implement these technologies may be deficient; additionally, there is a risk of the unilateral implementation of certain technologies with uncertain implications in terms of their impacts on climate. This underscores the necessity for long term climate strategies that are context-specific and tailored to individual countries, while moreover emphasizing the imperative for extensive international collaboration, including through technological and financial transfers. Finally, strong international governance structures, especially in the context of SRM, are crucial to ensure a responsible approach towards these technologies.

OLG Model Analysis of Delayed Retirement and Social Pension Effects on Family-Based Elderly Care in China

Driven by the traditional concept of “Raising Children to Ensure Old-age Security”, China’s elderly care system has long relied on a family-centered approach, with intergenerational financial transfers (IFTs) serving as a major source of income for the elderly. However, as China’s population ages, the government’s plan to implement delayed retirement from 2025, along with pension reforms, is expected to reshape family-based eldercare and intergenerational financial dynamics. This paper employs an Overlapping Generation (OLG) model, grounded in unified growth theory, which incorporates a delayed retirement policy under the constraint of pension fund balance to examine the impact of adjusting the pension contribution rates (PCRs) and raising retirement age (RA) on IFT rates. The research findings indicate a negative correlation between RA, PCR, and IFT. Both policies have the potential to alleviate the burden on family-based eldercare. The integrated implementation of these two policies not only creates room for a phased reduction in pension contribution rates but also enables the effective utilization of senior workers’ expertise and experience.

Determination of financial performance and transfer pricing aggressiveness: Analysis of sales growth, leverage, company size and intangible assets (literature review)

Previous research or relevant research is very important in a research or scientific article. Previous research or relevant research serves to strengthen the theory and phenomena of the relationship or influence between variables. This article reviews the Determination of Financial Performance and Transfer Pricing Aggressiveness: Analysis of Sales Growth, Leverage, Company Size and Intangible Assets, A Study of the Transfer Pricing Literature. The purpose of writing this article is to build a hypothesis of the influence between variables to be used in further research. The results of this research library are that: 1) The Effect of Sales Growth on Financial Performance; 2) The Effect of Leverage on Financial Performance; 3) Effect of Company Size on Financial Performance; 4) The Effect of Intangible Assets on Financial Performance; 5) The Influence of Sales Growth on Transfer Pricing Aggressiveness; 6) The Influence of Leverage on Transfer Pricing Aggressiveness; 7) The Influence of Company Size on Transfer Pricing Aggressiveness; 8) The Influence of Intangible Assets on Transfer Pricing Aggressiveness; and 9) The Influence of Financial Performance on Transfer Pricing Aggressiveness.

Adult Children’s Marital Timing and Upward Intergenerational Financial Transfers: Variation across Gender, Race, and Ethnicity

Marriage is a key adult milestone yet is also considered a greedy institution that monopolizes resources, jeopardizing adult children’s financial transfers to aging parents. As the age at which marriage shifts later into adulthood, this study examines whether marriage still operates as a greedy institution, considering the role of marital timing on upward financial transfers to aging parents. Using data from Waves I–V of Add Health and Wave I of the Add Health Parent Questionnaire from 1994 to 2018, we examined whether timing of marriage (never, early, on time, and late) was associated with adult children’s upward financial transfers to their parents, accounting for variation across gender, race, and ethnicity. Adult children who never married were the largest group who gave upward financial transfers to their aging parents (33%). Results suggested that marriage or timing of marriage was a greedy institution among men, women, white, Hispanic, and Asian adults, but not Black adults, suggesting heterogeneity in the role of marriage on family support.

Social protection, food security and sustaining households during COVID-19: Experiences of single mothers residing in Umkhanyakude, South Africa

This study examines the relationship between access to state cash transfers, food security and the sustainability of single-mother households in the rural Umkhanyakude Municipal area in Kwa-Zulu Natal province, South Africa. We explored the socio-economic impact of COVID-19 and cash transfers as a primary contributor to the economic well-being of single mothers from low-income rural communities. We also focus on financial transfers from non-state sources such as non-governmental organisations, kin and non-kin support systems. The sustainable livelihoods framework provides an analytical tool to understand how cash transfers from the state enable single mothers to navigate challenges during the pandemic. Drawing on interviews with 16 women from a rural community in Umkhanyakude, we analyse the distribution of family income to meet household expenses and the survival strategies such as livelihood activities initiated by single mothers to sustain households. The challenges and constraints that limit their livelihood outcomes, such as menial state support and financial constraints to sustain their economic activities are highlighted. Three key themes are discussed in this paper: the socio-economic impact of COVID-19 on food security, cash transfers as a strategy for reducing food insecurity, and access to sustainable livelihood activities to reduce food insecurities. This paper contributes to understanding single mothers' roles as actors and beneficiaries of the South African social protection system. It highlights opportunities for various state and non-state agents to advocate and support self-initiated economic activities in single-mother households.

Cryptocurrencies and capital flows: evidence from El Salvador’s adoption of Bitcoin

ABSTRACT This paper explores a monetary experiment, the adoption of Bitcoin as legal tender in El Salvador in 2021, to analyse the impact of digital currencies on international capital flows. Using a difference-in-differences approach, we find that, instead of making transfers easier, El Salvador’s official cross-border financial activity has decreased after the monetary change. This finding may reflect an increase in uncertainty. However, it is also in line with findings that link digital assets to illegal activity as previously officially recorded financial transfers may have been replaced by unrecorded activities.

Money and mental health: The impact of intergenerational transfers on elderly people in China.

Using three waves of the China Health and Retirement Longitudinal Study, this paper examines whether financial transfers from adult children to elderly parents affect the latter's mental health. Both OLS and instrumental variable (IV) estimates show that financial transfers significantly attenuate depressive symptoms of elderly individuals, with a much larger size of the IV estimates. We also examine the income and cultural channels through which intergenerational transfers work and further discuss the explanatory powers of these two channels through a decomposition analysis. The results suggest the cultural channel accounts for a larger proportion of the financial transfer effect. This means that the unique beneficial impact of intergenerational financial transfers on the mental health of older adults cannot be fully substituted in the foreseeable future.

It Takes a Village: Health and Old-Age Support in China.

How do older individuals cope with health impairments and the potential economic losses that ensue? Exploiting longitudinal data on a nationally representative sample of Chinese seniors, we investigate whether and how familial economic support responds to sudden and sizable changes in health. We find that both financial and instrumental support from children go up following a health shock. Furthermore, financial transfers coming from siblings, other relatives and friends increase by a larger percentage than those from children. We also find evidence that instrumental care received from a spouse responds strongly to health shocks. Finally, we find that although labor supply and earned income drop considerably, there is no significant change in non-health expenditure. Our results suggest that households are able to cope with some of the adverse economic impacts of health shocks by relying on support networks that extend beyond their children and grand-children. This is particularly relevant in the context of shrinking family sizes resulting from stringent family planning policies.

From Historical Context to Contemporary Realities: Illicit Capital Outflows from Nepal

This paper explores illicit capital outflows, explaining its multifaceted implications in underdeveloped countries like Nepal. The paper also highlights the historical dynamics adjacent to illicit financial transfers, including their causes, mechanisms, and repercussions. The paper examines the various facets of illicit capital outflows, corruption, and bad governance mechanisms in Nepal. It explores how modern technology and global financial structures facilitate these outflows, contributing to a drain of resources from Nepal. Moreover, the study delves into historical contexts where significant capital outflows occurred due to political transitions and exploitation of national treasuries. The paper also discusses contemporary instances of illicit financial activities, including illegal transactions through Currency Smuggling, Hundi, and the involvement of banks and business entities in illegal capital flights from Nepal to abroad. It emphasizes the challenges faced by regulatory bodies in curbing these illicit practices and their adverse impacts on economic development, revenue collection, and the formal economy in Nepal.

Effects of tourism on socio‐economic well‐being and its inter‐regional convergence: Evidence from China's 291 cities

AbstractBig socio‐economic well‐being gap is common across countries and regions. This study examines the impact of tourism on socio‐economic well‐being and its convergence from a comprehensive and inter‐regional convergence perspective. Using panel data of 291 cities during the period 2005–2019, we provide the comprehensive evaluation of socio‐economic well‐being at the city scale in China. Considering the dynamic characteristics of socio‐economic well‐being, we therefore estimate the impact using the system generalized method of moments. The result indicates that tourism significantly enhances local socio‐economic well‐being and is found to be robust. We also find the dominance of domestic tourism, the positive moderator effects of general budget expenditure, GDP per capita and urbanization, and a greater driving force in cities with higher socio‐economic well‐being. Since both β‐ and σ‐convergence hold, we confirm the positive effect of tourism on the convergence of inter‐regional socio‐economic well‐being. We emphasize policies support for tourism development in underdeveloped regions through fiscal expenditure, financial transfer payments, intellectual support, urbanization, and infrastructure construction. We suggest incorporating tourism into frameworks such as rural revitalization and regional coordinated development. We also recommend accelerating the expansion of tourism in underdeveloped regions and enhancing the quality of tourism in developed regions as spatial strategies, while emphasizing inter‐regional tourism coordination and cooperation.

Global Reparations within Capitalism: Aspirations and Tensions in Contemporary Movements for Reparatory Justice

ABSTRACTThe idea of global reparations has received increasing attention in recent years, not only with respect to legacies of slavery and colonialism, but also to interrelated issues such as climate change, debt crisis, or ongoing financial transfers from the Global South to the Global North. This article, which introduces and sets the Debate for the 2024 Forum issue on the political economy of 21st century global reparations, offers a critical perspective on contemporary global reparations agendas, including their macroeconomic and development implications for the Global South. It highlights the contentious, unresolved questions about how reparations movements should interact with the highly unequal structures of global capitalism. To what degree should they seek large redistributive gains within these structures, or else aim for more revolutionary standpoints which reject these structures? If the former, would this compromise any hope for reparations to be truly transformative and able to address the challenges presented by global white supremacy? The hope of reparations movements is to make progressive gains that could become the catalyst for more transformative changes on a global scale. At the same time, sympathetic critics question whether reparations are feasible or should be a primary focus of advocacy for achieving racial and climate justice on national as well as global levels. In outlining these points of debate, the article also considers the questions of how to make global reparations work for recipients, and how to finance them. It concludes by elaborating on the challenge of moving towards a more developmentalist emphasis of ‘systemic reparations’.

What explains intergenerational associations in home ownership and value in the UK? Investigating the transmission mechanisms

Evidence shows strong associations in wealth across generations, yet the underlying mechanisms are not fully understood. Some studies attribute these associations to direct financial transfers between generations, while others suggest more indirect mechanisms such as the impact of parental wealth on children’s earnings, family formation, or saving and investment behaviour. Factors such as residential homophily and house value appreciation may also play a role. This study examines the extent to which these mechanisms explain intergenerational associations in home ownership and home value in the UK. Using 30 years of high-quality panel survey data, we link 1341 parent-child pairs, track children’s sources of wealth accumulation in early adulthood, and assess their home ownership and value outcomes at mid-life (around age 35). We employ mediation analysis to determine the relative importance of different transmission mechanisms. Our findings reveal significant age-adjusted correlations in home ownership (0.27) and home value (0.40) between parents and their adult children. These correlations are mainly explained by children’s accumulated earnings, savings and investment income, while parental financial transfers and children’s family lives play limited roles. A substantial part of the correlations in home values are also explained by parental characteristics other than their housing wealth, particularly their place of residence. Future research should pay more attention to the role of place and the influence that parental housing wealth has on the earnings and financial behaviour of young adults.

მიგრაციის სოციალურ-ეკონომიკური ასპექტები საქართველოში

Migration is a topical issue in Georgia, as it is in many other countries. There are various causes that contribute to migration, including changes in the economy and personal choices. It should be mentioned that according to the research, in the context of Georgia's recent history, financial transfers from immigrants may be able to support the nation's economic growth. Remittances have the potential to stimulate individual sectors of the economy, contribute to the stability of national currencies, improve household living standards. To some extent, the state can direct the remittance resource towards social economic development by implementing appropriate policies.

Climate change, strict Pareto improvements in welfare and multilateral financial transfers

Climate change, strict Pareto improvements in welfare and multilateral financial transfers

Financial transfer payment and green development transition in backward area: a case study in Jiangxi Province, China

Financial transfer payment and green development transition in backward area: a case study in Jiangxi Province, China

Parent-Child Relationship Typologies and Associated Health Status Among Older Adults in the United States and China: A Cross-Cultural Comparison.

Cultural differences in intergenerational relationships have been well established in prior research. However, cross-national comparison evidence on the parent-child relationship and its health implications remains limited. Data from the 2014 U.S. Health and Retirement Study and the 2015 Health and Retirement Longitudinal Study in China were used (N US, non-Hispanic Whites only = 3,918; N China = 4,058). Relationship indicators included coresidence, living nearby, having weekly contact, receiving assistance with daily activities, providing grandchild care, and financial transfer to/from children. Latent class and regression analyses were conducted. Four classes were identified for non-Hispanic White older Americans: (1) distant and uninvolved (6.58%), (2) geographically proximate with frequent contact and downward support (47.04%), (3) coresident with frequent contact and upward support (13.1%), and (4) geographically proximate with frequent contact (33.28%). Three classes were identified among older Chinese: (1) coresident with frequent contact and upward support (37.46%), (2) coresident/interdependent (25.65%), and (3) geographically proximate with frequent contact and upward financial support (36.89%). For non-Hispanic White older Americans, providing downward support was associated with fewer functional limitations and better cognition. Receiving instrumental support from children was associated with more depressive symptoms, more functional limitations, and poorer cognition among older Chinese. Cultural contrasts were evident in parent-child relationship typologies and their health implications. Compared to the U.S. non-Hispanic Whites, parent-child relationships in China tended to be closerand associated with poorer health status. The findings call for culturally relevant strategies to improve parent-child relationships and ultimately promote the health of older adults.

Crowding in or Out？National Public Pension, Inter-Generational Contract, and Family Support to Empty-Nest Older Parents in Rural China

ABSTRACT Evidence to date has been inconclusive on the effects of public pension on family support to older adults, and the underlying mechanism behind such effects remains unclear. This study examines the effects of the New Rural Social Pension Scheme on family support to empty-nest older parents in rural China, where family care is traditionally favored for older adults. Using data from the China Longitudinal Aging Social Survey, the findings reveal that pension receipt promotes bidirectional financial transfers and intimate relationships between generations, thus increasing (or crowding in) children’s financial and care support to their empty-nest parents. On the other hand, receiving pensions may discourage parental care support to children and partially decrease (or crowd out) children’s financial and care support. This crowding-out effect, however, is limited and thus insufficient for counteracting the crowding-in effects from other pathways. Overall, these findings indicate that national welfare, such as pensions, can encourage family support through inter-generational contracts and intimacy, strengthening familial bonds and facilitating mutual assistance within families. For policy implications, government should prioritize improving benefit levels of public pensions to harness the caregiving potential of families and providing essential services that assist families in addressing care burdens.

The Effectiveness of Fiscal Transfer of South Sumatra Province: Initiation of Ecological Fiscal Transfer Concept

This study identifies the effectiveness of South Sumatra Provincial Government’s financial assistance budget transfer on Poverty Levels and the Human Development Index. This fiscal transfer from the Provincial Government is to assist and support the Regency/City Governments’ budget for their development program. The problem of this study is to identify the effect of this fiscal transfer to support the Regency/City Government in reducing poverty level and increasing Human Development Index. A coefficient of determination analysis is applied to assess the effect of the provincial financial assistance to reduce poverty rates and increase the Human Development Index. Analysis is also conducted to identify opportunities for the implementation of Ecological Fiscal Transfer model for the allocation of financial assistance budget. The study analyzes data from the Regional Budget of South Sumatra Province for the last 10 years. Coefficient of determination analysis shows that the fiscal transfer in the form of financial assistance fails to explain the variation of poverty rates and the Human Development Index in the area. Following that, the study also adopted an Ecological Fiscal Transfer model to simulate the allocation of Provincial Financial Assistance. Keywords: financial assistance, ecological fiscal transfer, poverty, Human Development Index

Determining the impact of the 2004 Australian Baby Bonus on fertility rates using a synthetic control analysis

AbstractThe longstanding issue of declining fertility in developed nations motivates a revaluation of the effectiveness of fertility‐targeted policies. This thesis focuses on the 2004 Australian Baby Bonus, a past pronatalist incentive offering a lump sum financial transfer for every child born after 1 July 2004. We employ the synthetic control method to construct a counterfactual scenario for Australia in the absence of the policy's introduction. Using aggregate country‐level data from the World Bank World Indicator's Database from 1998 to 2012, we carefully select suitable Organisation for Economic Co‐operation and Development countries as control units and economic indicators to include as covariates. Our primary specification reveals a 6.82% increase in total fertility between 2005 and 2012, induced by the ABB. Robustness tests, including various model specifications, consistently confirm a positive fertility effect. This comparative case study provides a comprehensive analysis of the ABB's impact, emphasising the significance of methodological choices in assessing fertility‐related policies.