Edward C. Norton () (Department of Health Policy and Administration, University of North Carolina at Chapel Hill) Courtney Harold Van Houtven () (Center for Health Services Research in Primary Care, The Durham Department of Veteran Affairs Medical Center and Department of Medicine, Duke University Medical Center)
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Most parents divide their bequests equally among their children, whereas inter-vivos transfers are usually unequal. We propose that exchange is better for inducing inter-vivos transfers than bequests. Inter-vivos transfers can be adjusted quickly to the amount of care, are less costly than writing a will, and can be kept secret from other family members and the public. The results from national longitudinal data show that, as expected, if a parent gives any inter-vivos transfers, she is more likely to give to children who provide informal care. Informal care has no effect on the equality of intended bequests.
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Volume (Year): 73 (2006) Issue (Month): 1 (July) Pages: 157–172 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: I12 - Health, Education, and Welfare - - Health - - - Health Production J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
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