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Inheritances, Intergenerational Transfers, and the Accumulation of Health

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  • Katherine Grace Carman
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    Abstract

    This paper considers the mechanisms behind a positive correlation between inheritances and health. First, there may merely be a correlation: those from families with enough wealth to provide an inheritance tend to have better health. Second, financial resources could be used to purchase inputs to health. Third, bequests may signal a stronger interest in one's child. This reminder to the child could improve their emotional well-being. On average, the positive correlation suggests merely correlation. However, among subsets of the population, particularly men and those expecting to receive an inheritance, there is a causal relationship likely driven by the third mechanism.

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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.103.3.451
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    Bibliographic Info

    Article provided by American Economic Association in its journal American Economic Review.

    Volume (Year): 103 (2013)
    Issue (Month): 3 (May)
    Pages: 451-55

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    Handle: RePEc:aea:aecrev:v:103:y:2013:i:3:p:451-55

    Note: DOI: 10.1257/aer.103.3.451
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