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Classified broadly, two motives for intra-family transfers exist: altruism and selfishness. This paper examines two selfish hypotheses ―the exchange motive (strategic bequest motive) and the demonstration effect― using a new Japanese micro data set. My analysis of the determinants of intergenerational co-residence, distance between residences, and frequency of contact yields considerable support for the exchange motive but no support for the demonstration effect. The findings are consistent with the exchange motive after distinguishing it from mutual altruism using a specific question.

Intra-family Transfers in Japan: Intergenerational Co-residence, Distance, and Contact