Working Papers in Economics,
University of Gothenburg, Department of Economics

Abstract: In many developing and transitional countries, inter-household transfers in general and gifts in particular are sizable and very important. We use unique Romanian data that enables us, contrary to most previous studies, to isolate pure gifts from other kinds of private transfers and to study them in detail. We find that social norms are important for explaining the occurrence of gifts and that the rich and the poor receive to the same extent. However, we find different motives for gifts to the rich and the poor. Middle- and high-income households are part of reciprocal networks and receive more the higher their incomes and the more they give to others. Although the poor may be excluded from reciprocal networks, they still receive, since there is a social duty norm to give.

Keywords: Gifts; Transfers; altruism; reciprocity; Romania; social norms

JEL-codes: D10; H55; I30; J14; R20; Z13

33 pages, First version: September 4, 2007. Revised: April 30, 2008.

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Published as

Andreea Mitrut and Katarina Nordblom, (2010), 'Social Norms and Gift Behavior: Theory and Evidence from Romania', European Economic Review, vol 54, pages 998-1015

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