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Are Americans and Indians More Altruistic than the Japanese and Chinese? Evidence from a New International Survey of Bequest Plans

  • Charles Yuji Horioka

This paper discusses three alternative assumptions concerning household preferences (altruism, self-interest, and a desire for dynasty building) and shows that these assumptions have very different implications for bequest motives and bequest division. After reviewing some of the literature on actual bequests, bequest motives, and bequest division, the paper presents data on the strength of bequest motives, stated bequest motives, and bequest division plans from a new international survey conducted in China, India, Japan, and the United States. It finds striking inter-country differences in bequest plans, with the bequest plans of Americans and Indians appearing to be much more consistent with altruistic preferences than those of the Japanese and Chinese and the bequest plans of the Japanese and Chinese appearing to be much more consistent with selfish preferences than those of Americans and Indians. These findings have important implications for the efficacy and desirability of stimulative fiscal policies, public pensions, and inheritance taxes.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 20158.

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Date of creation: May 2014
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Publication status: published as in Review of Economics of the Household, vol. 12, issue 3 ( September 2014) (Special Issue on "Altruism and Monetary Transfers in the Household: Inter and Intra-generation Issues").
Handle: RePEc:nbr:nberwo:20158
Note: AG EFG PE
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