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The wealth yet to come: inheritance expectations and households' economic decisions

Author

Listed:
  • David Loschiavo

    (Bank of Italy)

  • Mirko Moscatelli

    (Bank of Italy)

  • Eleonora Porreca

    (Bank of Italy)

  • Francesca Zanichelli

    (Bank of Italy)

Abstract

This paper analyses how expectations of receiving an inheritance affect the main economic decisions of Italian households. Using data from the Survey on Household Income and Wealth (SHIW), we show that households expecting to receive a bequest in the future consume more and save less than otherwise comparable households. Labour supply declines among households whose main income earner is older. Inheritance expectations are also associated with higher investment in financial assets and a higher propensity to take on consumer debt. Overall, expectations of future transfers represent a remarkable channel through which intergenerational wealth influences economic choices well before its actual realization.

Suggested Citation

  • David Loschiavo & Mirko Moscatelli & Eleonora Porreca & Francesca Zanichelli, 2026. "The wealth yet to come: inheritance expectations and households' economic decisions," Questioni di Economia e Finanza (Occasional Papers) 1032, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_1032_26
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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