Life-Cycle and Altruistic Theories of Saving with Lifetime Uncertainty
AbstractThis paper examines testable implications of the life-cycle theory of saving with lifetime uncertainty. Theory sugges ts that persons facing lower mortality rates should exhibit greater consumption growth. Nonparametric tests, using the Retirement Histor y Survey, provide mixed support for the theory. A parameterized model allowing for altruism provides more support. Estimates of a bequest parameter indicate that elderly households value contributions to bequests as highly as contributions to their own consumption. This i s equally true for households with and without children. Such a beques t motive would curtail the impact of lifetime uncertainty on consumpti on growth. Copyright 1993 by MIT Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by MIT Press in its journal Review of Economics & Statistics.
Volume (Year): 75 (1993)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Wojciech Kopczuk & Joseph Lupton, 2005.
"To Leave or Not To Leave: The Distribution of Bequest Motives,"
NBER Working Papers
11767, National Bureau of Economic Research, Inc.
- Wojciech Kopczuk & Joseph P. Lupton, 2007. "To Leave or Not to Leave: The Distribution of Bequest Motives," Review of Economic Studies, Oxford University Press, vol. 74(1), pages 207-235.
- Wojciech Kopczuk & Joseph P. Lupton, 2004. "To leave or not to leave: the distribution of bequest motives," Finance and Economics Discussion Series 2004-33, Board of Governors of the Federal Reserve System (U.S.).
- Sandra Freire, 2004. "Funeral Costs, Saving Behaviour and HIV/AIDS," Cahiers de la Maison des Sciences Economiques bla04092, Université Panthéon-Sorbonne (Paris 1).
- Lopez, Fernando Lera, 1999. "Recent decline in family savings rate: possible Explanations," ERSA conference papers ersa99pa098, European Regional Science Association.
- Rebelein, Robert P., 2005. "Intergenerational Strategic Behavior and Crowding Out in a General Equilibrium Model," Vassar College Department of Economics Working Paper Series 74, Vassar College Department of Economics.
- Michael Perry, 2006. "On the Covariance Structure of Changes in Consumption in the Health and Retirement Study," Working Papers wp112, University of Michigan, Michigan Retirement Research Center.
- Kinugasa, Tomoko & Mason, Andrew, 2007. "Why Countries Become Wealthy: The Effects of Adult Longevity on Saving," World Development, Elsevier, vol. 35(1), pages 1-23, January.
- Andrew Mason & Tomoko Kinugasa, 2005. "Why Nations Become Wealthy: The Effects of Adult Longevity on Saving," Working Papers 200514, University of Hawaii at Manoa, Department of Economics.
- Esteban A. Nicolini, 2001.
"Adult Mortality And Investment: A New Explanation Of The English Agricultural Productivity In The 18th Century,"
Working Papers in Economic History
wh016301, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
- Nicolini, Esteban A., . "Adult mortality and investment: a new explanation of the English agricultural productivity in the 18th century," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/396, Universidad Carlos III de Madrid.
- Michael Perry, 2005. "Estimating Life Cycle Effects of Survival Probabilities in the Health and Retirement Study," Working Papers wp103, University of Michigan, Michigan Retirement Research Center.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.