IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Bequests and Aggregate Wealth Accumulation in Germany

  • Anette Reil-Held

    (University of Mannheim, Department of Economics, A5, D-68131 Mannheim)

Registered author(s):

    This paper estimates the proportion of current wealth in Germany which is generated by intergenerational bequests. It begins with the flow-of-bequests approach which cumulates annual flows of bequests into a stock of transfer wealth. Assuming exponential growth of the economy, inherited wealth accounts for about 35 per cent of total wealth in Germany, a figure comparable to that obtained for other countries. However, the assumptions underlying this estimate are inappropriate for Germany, because they fail to take account of the special circumstances of the postwar period. Modifying the flow-of-bequests method to allow for these special circumstances reduces the share of inherited wealth to about 10 per cent, surprisingly low in comparison to other countries.To confirm this result, a further method was developed based on a regression model of wealth as a function of socio-economic variables. The wealth of the nation is estimated with bequests included, and the contribution of bequests is then calculated by setting bequests equal to zero. This result again produces a share of about 10 per cent for inherited wealth, making this figure the most plausible value for Germany in the 1980s. However, the share can be expected to increase in future. The Geneva Papers on Risk and Insurance (1999) 24, 50–63. doi:10.1111/1468-0440.00004

    If 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.

    File URL: http://www.palgrave-journals.com/gpp/journal/v24/n1/pdf/2500004a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/gpp/journal/v24/n1/full/2500004a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Palgrave Macmillan in its journal The Geneva Papers on Risk and Insurance.

    Volume (Year): 24 (1999)
    Issue (Month): 1 (January)
    Pages: 50-63

    as
    in new window

    Handle: RePEc:pal:gpprii:v:24:y:1999:i:1:p:50-63
    Contact details of provider: Web page: http://www.palgrave-journals.com/

    Order Information: Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
    Web: http://www.palgrave-journals.com/pal/subscribe/index.html Email:


    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:24:y:1999:i:1:p:50-63. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daniel Foley)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.