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Bequest motives: a comparison of Sweden and the United States

  • Laitner, John
  • Ohlsson, Henry

This paper reviews four well--known theoretical models of private bequest behavior, notes their differing implications for public policy, and discusses a way of empirically discriminating among them. Then it implements the test with micro data from Sweden (LLS) and the U.S. (PSID). The so-called altruistic (or dynastic) model, which, among the four models, has perhaps the most wide-ranging implications for policy, receives some, though limited, support in the LLS, but not the PSID. The inter-country difference is statistically significant. There is evidence of a potential complication due to a dependence of children's education on parents financial status in the case of the U.S.

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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 79 (2001)
Issue (Month): 1 (January)
Pages: 205-236

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Handle: RePEc:eee:pubeco:v:79:y:2001:i:1:p:205-236
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505578

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