Individual preferences and the distribution of wealth
For a sub-sample of French households of an Insee wealth survey, we obtain new and relative measures of 5 individual preference parameters : the risk "attitude" (aversion, prudence...), the rate of time depreciation over the life-cycle, the degree of short-term impatience, and the degrees of family and non family altruism. Short-term impatience and non family altruism are found no to affect wealth but, contrarily to recent results of behavioural analysis, the three other parameters have significant effects on wealth (financial, gross or net), which are consistent with theoretical predictions : wealth accumulation increases with the degree of prudence (precautionary saving), falls with time preference (life-cycle saving) and rises with the degree of family altruism (wealth intended for bequests). The way preferences are measured allows to get rid of potential causality problems and the joint explanatory power of the three parameters appears sizeable, although less important than the one of classic explanatory variables (age, income, social class and inheritance).
|Date of creation:||Sep 2005|
|Date of revision:|
|Note:||View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00590723|
|Contact details of provider:|| Web page: http://hal.archives-ouvertes.fr/ |
When requesting a correction, please mention this item's handle: RePEc:hal:psewpa:halshs-00590723. 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: (CCSD)
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.