How do private transfers respond to public transfers? Evolutionary evidence from Thailand

Private inter-household transfers and public transfers can change along with changes in social and economic conditions. However, most previous studies have examined their relationship from static perspectives. This study contributes new evidence by investigating the dynamic relationship between public transfers and private inter-household transfers over the past three decades using a Thailand data set. The results from econometric analysis show that there is no crowding-out effect of public transfers on private inter-household transfers for the country as a whole as well as for urban and rural households separately; instead, inter-household private transfers increase along with public transfers.