A Note on the Multi-Good Model of Altruistic Private Transfers

This paper extends a standard altruism model of private transfers to a multiple goods model. It has been pointed out that unlike the exchange-motivated transfers, altruistically motivated private transfers would mitigate income inequality in terms of quantity. However, taking the effect of multiple goods into account, it is shown that inequality-increasing transfers with purely altruistic motives can be apparently observed when market exchange is not available. This paper also introduces some concrete examples from the cases in a post-Soviet State.