Like Father, Like Son: Inheriting and Bequeathing
AbstractEmpirical evidence suggests that parents who have themselves inherited from their own parents are more likely to leave an estate to their children even after controlling for income, wealth and education. This implies an indirect reciprocal behavior between three generations by transmitting the attitude towards bequeathing from one generation to the next. We incorporate such an intergenerational chain into an overlapping generations model and show that the economy might be characterized by multiple steady states involving poverty traps. Individuals will not leave bequests unless per capita income levels exceed a threshold level. In such a situation, an unfunded social security security programme may help to overcome poverty by providing additional old age income out of which to bequeath.
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 InfoPaper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0318.
Length: 25 pages
Date of creation: Feb 2012
Date of revision:
Find related papers by JEL classification:
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
This paper has been announced in the following NEP Reports:
- NEP-AGE-2012-03-21 (Economics of Ageing)
- NEP-ALL-2012-03-21 (All new papers)
- NEP-DEM-2012-03-21 (Demographic Economics)
- NEP-DGE-2012-03-21 (Dynamic General Equilibrium)
- NEP-EVO-2012-03-21 (Evolutionary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michel, Philippe & Thibault, Emmanuel & Vidal, Jean-Pierre, 2006.
"Intergenerational altruism and neoclassical growth models,"
Handbook on the Economics of Giving, Reciprocity and Altruism,
- Michel, Philippe & Thibault, Emmanuel & Vidal, Jean-Pierre, 2004. "Intergenerational altruism and neoclassical growth models," Working Paper Series 0386, European Central Bank.
- Dohmen, Thomas J & Falk, Armin & Huffman, David & Sunde, Uwe, 2008.
"The Intergenerational Transmission of Risk and Trust Attitudes,"
CEPR Discussion Papers
6844, C.E.P.R. Discussion Papers.
- Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2012. "The Intergenerational Transmission of Risk and Trust Attitudes," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 645-677.
- Dohmen, Thomas & Falk, Armin & Huffman, David B. & Sunde, Uwe, 2006. "The Intergenerational Transmission of Risk and Trust Attitudes," IZA Discussion Papers 2380, Institute for the Study of Labor (IZA).
- Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2008. "The Intergenerational Transmission of Risk and Trust Attitudes," CESifo Working Paper Series 2307, CESifo Group Munich.
- Donald Cox & Serena Ng & Andreas Waldkirch, 2000.
"Intergenerational Linkages in Consumption Behavior,"
Boston College Working Papers in Economics
482, Boston College Department of Economics.
- Andreas Waldkirch & Serena Ng & Donald Cox, 2004. "Intergenerational Linkages in Consumption Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
- Donald Cox & Serena Ng & Andreas Waldkirch, 2000. "Intergenerational Linkages in Consumption Behavior," Econometric Society World Congress 2000 Contributed Papers 1791, Econometric Society, revised 08 Nov 2000.
- Georg Kirchsteiger & Alexander Sebald, 2010.
"Investments into Education - Doing as the Parents Did,"
ULB Institutional Repository
2013/149588, ULB -- Universite Libre de Bruxelles.
- Kirchsteiger, Georg & Sebald, Alexander, 2010. "Investments into education--Doing as the parents did," European Economic Review, Elsevier, vol. 54(4), pages 501-516, May.
- Kirchsteiger, Georg & Sebald, Alexander, 2006. "Investments into Education - Doing as the Parents Did," CEPR Discussion Papers 5686, C.E.P.R. Discussion Papers.
- Arrondel, Luc & Masson, Andre, 2006.
"Altruism, exchange or indirect reciprocity: what do the data on family transfers show?,"
Handbook on the Economics of Giving, Reciprocity and Altruism,
- Luc Arrondel & André Masson, 2002. "Altruism, Exchange or Indirect Reciprocity: What do the Data on Family Transfers Show?," DELTA Working Papers 2002-18, DELTA (Ecole normale supérieure).
- Luc Arrondel, 2009. ""My Father was right": The transmission of values between generations," PSE Working Papers halshs-00566808, HAL.
- Becker, Gary S & Mulligan, Casey B, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 729-58, August.
- Wilhelm, Mark Ottoni & Brown, Eleanor & Rooney, Patrick M. & Steinberg, Richard, 2008. "The intergenerational transmission of generosity," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2146-2156, October.
- Hillel Rapoport & Jean-Pierre Vidal, 2003.
"Economic Growth and Endogenous Intergenerational Altruism,"
2003-04, Department of Economics, Bar-Ilan University.
- Rapoport, Hillel & Vidal, Jean-Pierre, 2007. "Economic growth and endogenous intergenerational altruism," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1231-1246, August.
- Kerwin Kofi Charles & Erik Hurst, 2003.
"The Correlation of Wealth across Generations,"
Journal of Political Economy,
University of Chicago Press, vol. 111(6), pages 1155-1182, December.
- Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
- Luc Arrondel & Cyril Grange, 2006. "Transmission and inequality of wealth: An empirical study of wealth mobility from 1800 to 1938 in France," Journal of Economic Inequality, Springer, vol. 4(2), pages 209-232, August.
- Manuel Toledo, 2006. "On the Intergenerational Persistence of Work Hours," 2006 Meeting Papers 226, Society for Economic Dynamics.
- Nancy A. Jianakoplos & Paul L. Menchik, 1997. "Wealth Mobility," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 18-31, February.
- Arrondel, L. & Masson, A. & Pestieau, P., 1996.
"Bequest and inheritance: empirical issues and France-U.S. comparison,"
DELTA Working Papers
96-19, DELTA (Ecole normale supérieure).
- Arrondel, L. & Masson, A. & Pestieau, P., . "Bequests and inheritance: empirical issues and France-U.S. comparison," CORE Discussion Papers RP -1274, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Weiler).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.