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Bequest Motives: A Comparison of Sweden and the United States

  • Laitner, John

    (University of Michigan)

  • Ohlsson, Henry

    ()

    (Department of Economics)

This paper reviews four well--known theoretical models of private bequest behavior, notes their differing implications for public policy, and discusses a way of empirically discriminating among them. Then it implements the test with micro data from Sweden (LLS) and the U.S. (PSID). The so-called altruistic (or dynastic) model, which, among the four models, has perhaps the most wide-ranging implications for policy, receives some, though limited, support in the LLS, but not the PSID. The inter-country difference is statistically significant. There is evidence of a potential complication due to a dependence of children's education on parents financial status in the case of the U.S.

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File URL: http://www.elsevier.nl/cas/tree/store/pubec/sub/2001/79/1/1973.pdf
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Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 1998:16.

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Length: 32 pages
Date of creation: 15 Jul 1998
Date of revision:
Publication status: Published in Journal of Public Economics, 2001, pages 205-236.
Handle: RePEc:hhs:uunewp:1998_016
Contact details of provider: Postal:
Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden

Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
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