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Equal Bequests and Parental Altruism: Compatibility or Orthogonality?

  • Oded Stark

The large amount of equal division of bequests by parents who otherwise would have compensated the earning differences among their children is attributed to the cost associated with unequal bequests. This paper identifies a source of this cost and explains why equal bequests to children whose earnings differ, and parental altruism toward these children, are not mutually exclusive.

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Paper provided by Chinese University of Hong Kong, Department of Economics in its series Departmental Working Papers with number _089.

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Date of creation: Feb 1988
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Handle: RePEc:chk:cuhked:_089
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  1. Wilhelm, Mark O, 1996. "Bequest Behavior and the Effect of Heirs' Earnings: Testing the Altruistic Model of Bequests," American Economic Review, American Economic Association, vol. 86(4), pages 874-92, September.
  2. Dunn, Thomas A. & Phillips, John W., 1997. "The timing and division of parental transfers to children," Economics Letters, Elsevier, vol. 54(2), pages 135-137, February.
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