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Bequests, Inter Vivos Transfers, and Wealth Distribution: Technical Paper 2000-8

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  • Shinichi Nishiyama

Abstract

This paper extends the heterogeneous agent overlapping generations model with bequests in Nishiyama (2000) by adding two-way intergenerational altruism and inter vivos transfers. Calibrating the model to the U.S. economy, the paper measures time preference and intergenerational altruism consistent with the economy's capital-output ratio and the sizes of intergenerational transfers. In the model, households in the same dynasty play a Nash game in each period to determine their optimal consumption, working hours, inter vivos transfers, and savings. The model suggests

Suggested Citation

  • Shinichi Nishiyama, 2000. "Bequests, Inter Vivos Transfers, and Wealth Distribution: Technical Paper 2000-8," Working Papers 13332, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:13332
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    1. Modigliani, Franco, 1988. "The Role of Intergenerational Transfers and Life Cycle Saving in the Accumulation of Wealth," Journal of Economic Perspectives, American Economic Association, vol. 2(2), pages 15-40, Spring.
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    12. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1997. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1121-1166, December.
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    15. Shinichi Nishiyama, 2000. "Measuring Time Preference and Parental Altruism: Technical Paper 2000-7," Working Papers 13333, Congressional Budget Office.
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