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Subjective Inheritance Expectations and Economic Outcomes

Author

Listed:
  • Stefania Basiglio

    (Faculty of Law, University of Trento, Italy)

  • Mariacristina Rossi

    (Department of Management, University of Torino, Italy)

  • Arthur van Soest

    (Tilburg School of Economics and Management, Tilburg University, Nederlands)

Abstract

In this paper we investigate whether and to what extent inheritance expectations act as a driver of economic choices. We use the DHS dataset merged with a specific module on subjective probabilities on inheritance receiving and its amount foreseen in the next ten years. Hence, we analyze whether the expected inheritance acts as a deterrent to saving. Results suggest that individuals perceive the expected inheritances as a potential increase of personal wealth, which leads to a reduction in savings. Expectations appear to matter also in the enhancement of the intention to bequeath and in future work versus leisure choices.

Suggested Citation

  • Stefania Basiglio & Mariacristina Rossi & Arthur van Soest, 2019. "Subjective Inheritance Expectations and Economic Outcomes," Working papers 062, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    • Handle: RePEc:tur:wpapnw:062
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    More about this item

    Keywords

    Subjective expectations; Savings; Inheritance.;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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