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Inheritances, Intergenerational Transfers, and the Accumulation of Health

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  • Katherine Grace Carman

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.

Suggested Citation

  • Katherine Grace Carman, 2013. "Inheritances, Intergenerational Transfers, and the Accumulation of Health," American Economic Review, American Economic Association, vol. 103(3), pages 451-455, May.
    • 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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    References listed on IDEAS

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    Cited by:

    1. Shi, Xuezhu, 2022. "The health-wealth nexus for the elderly: Evidence from the booming housing market in China," Labour Economics, Elsevier, vol. 78(C).
    2. Binswanger, J. & Carman, K.G., 2011. "The Role of Desicion Making Processes in the Correlation between Wealth and Health," Other publications TiSEM deb8d0eb-7290-4a34-931b-d, Tilburg University, School of Economics and Management.
    3. Oscar Erixson, 2017. "Health responses to a wealth shock: evidence from a Swedish tax reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(4), pages 1281-1336, October.
    4. Declan French, 2023. "From financial wealth shocks to ill‐health: Allostatic load and overload," Health Economics, John Wiley & Sons, Ltd., vol. 32(4), pages 939-952, April.
    5. Ong, Rachel & Nguyen, Toan & Kendall, Garth, 2018. "The impact of intergenerational financial transfers on health and wellbeing outcomes: A longitudinal study," Social Science & Medicine, Elsevier, vol. 214(C), pages 179-186.
    6. van Kippersluis, Hans & Galama, Titus J., 2014. "Wealth and health behavior: Testing the concept of a health cost," European Economic Review, Elsevier, vol. 72(C), pages 197-220.
    7. Julien Albertini & Anthony Terriau, 2019. "Wealth and health in South Africa," Working Papers halshs-02073800, HAL.
    8. Muchomba, Felix M., 2021. "Parents’ assets and child marriage: Are mother’s assets more protective than father’s assets?," World Development, Elsevier, vol. 138(C).

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    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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