Analysis of Private Transfers with Panel Fixed Effect Censored Model Estimator
Understanding private transfer is important for safety-net policies because private transfer provides economic benefits similar to those of public programs such as unemployment insurance and pension. Applying Honoré’s [Econometrica 60 (1992) 533] panel fixed-effect censored model estimator to Korean data, we show that private transfer is altruistically motivated and there is a strong crowding-out effect of public transfer on private transfer. We also find that low-income people suffered to different degrees during the financial crisis period of 1997 to 1998. This finding and the crowding-out effect may be taken as failures of the Korean public transfer programs during the period.
Private transfers; Public transfers; Panel data
Kang, S. J. and Lee, Myoung-jae.
Analysis of Private Transfers with Panel Fixed Effect Censored Model Estimator. (2003). Economics Letters. 80, (2), 233-237. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/173
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