Reverse mortgage markets remain small internationally, with bequest motives frequently cited as a key reason. We develop a new two-generation lifecycle simulation model to study the role of reverse mortgages in intergenerational financial planning, particularly as a tool for families to bring forward bequests. The model incorporates parental altruism by assuming parents derive utility not only from their own consumption and housing but also from their child’s current and future financial well-being. This extends traditional bequest models, which typically consider only the wealth transferred at death. The model accounts for house price risk, interest rate risk, investment risk, wage growth, health shocks, long-term care costs, private pensions, and means-tested public pensions. Using this framework, calibrated to Australian economic and policy settings, we compare the welfare gains from bequests and early bequests (inter vivos gifts) for homeowning parents and adult children seeking to purchase their first home. The results suggest that families across a range of wealth levels can experience substantial welfare gains when the parent uses a reverse mortgage both for retirement income and to gift the adult child a first home deposit. Early bequests funded through reverse mortgages increase overall family welfare compared to preserving home equity for a bequest or using a reverse mortgage solely for the parent’s consumption, particularly for middle-wealth households. A policy experiment shows that gifting limits reduce welfare gains for some families, but have a small overall impact. These findings suggest that policies encouraging informed use of reverse mortgages could improve intergenerational financial security.

This article adds to conceptualisations of philanthropy. Applying an ontological approach within an evolutionary perspective, it advances an analogous African narrative of pro-social transactions of gift-giving, or gifting, associated with Marcel Mauss. Originating on the continent, this relational behaviour is subject to indeterminate complex processes which co-determine any society’s institutional design. Analysing gifting’s sociopolitical influence on the continent pays attention to the (non-)agonistic as well as the ‘vertical’ and ‘horizontal’ features of gifting across pre- to post-colonial eras, examining their role in establishing patrimonial systems of governance. When gifting is set against (institutionalised) philanthropy’s dominant discourse, issues for its critique are identified. Suggestions for further inquiry and implications for improving development on the continent are provided.

In his Scroogenomics, Joel Waldfogel argues that gifting creates enormous deadweight loss, as individuals give one another gifts that they do not want or cannot use. He views efficiency as static, calculating the gains from trade (or gifting) at the moment of transaction. A puzzle arises, however, when one realizes that gifting has been a nearly ubiquitous institution throughout history. If gifting wastes valuable resources, why does it persist? We argue that gift giving is dynamically efficient despite the possibility of generating short-term deadweight loss. A well-functioning market economy requires expanded social networks and trustworthiness among anonymous and quasi-anonymous exchange partners. Gifting allows individuals to signal trustworthiness by offering ‘burnt sacrifices’. Gifting practices that include a willingness to sacrifice via reciprocity norms, public visibility and ritual will tend to promote generalized trust. We consider these four elements – sacrifice, reciprocity, publicness, and ritual – to be critical institutional design principles for fostering dynamic efficiency. Our essay contributes to the literature on institutional economics by prompting scholars to think about the long-term (dynamic) efficiencies generated by cultural practices that appear inexplicably inefficient.

The Holstebro Festuge (festival week), which marked its twenty-fifth anniversary in 2014, is a huge undertaking organized by Odin Teatret every three years that involves the participation of many local people and a significant number of town and regional organizations as well as numerous international artists in a cultural extravaganza of performances, screenings, art exhibits, and barters that takes place over nine days in the city and surrounding region. In this article, Ian Watson examines the implications of the Festuge for Odin’s connection to and relationship with the city it has called home for a little under fifty years. As Watson points out, the tacitly accepted narrative, embedded in much of Eugenio Barba’s considerable body of writings, Odin’s performances and workshops as well as much of the material written about Barba and/or his company by scholars, is that the pursuit of an aesthetic is Barba’s primary if not sole preoccupation. Watson challenges this limited reading as he draws upon the sociologist Marcel Mauss’s study of ‘gifting’ in particular traditional societies, and the political scientist Robert Putnam’s parsing of social capital in Bowling Alone to examine the Festuge. Ian Watson is Professor of Theatre and Chair of the Department of Arts, Culture and Media at Rutgers University-Newark. Among other publications, he is author of Towards a Third Theatre and Negotiating Culture: Eugenio Barba and the Intercultural Debate.