Like Father, Like Son: Inheriting and Bequeathing
Empirical evidence suggests that parents who have themselves inherited from their own parents are more likely to leave an estate to their children even after controlling for income, wealth and education. This implies an indirect reciprocal behavior between three generations by transmitting the attitude towards bequeathing from one generation to the next. We incorporate such an intergenerational chain into an overlapping generations model and show that the economy might be characterized by multiple steady states involving poverty traps. Individuals will not leave bequests unless per capita income levels exceed a threshold level. In such a situation, an unfunded social security security programme may help to overcome poverty by providing additional old age income out of which to bequeath.
|Date of creation:||Feb 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.rwi-essen.de/
More information through EDIRC
|Order Information:||Web: http://www.rwi-essen.de/publikationen/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michel, Philippe & Thibault, Emmanuel & Vidal, Jean-Pierre, 2006.
"Intergenerational altruism and neoclassical growth models,"
Handbook on the Economics of Giving, Reciprocity and Altruism,
- Michel, Philippe & Thibault, Emmanuel & Vidal, Jean-Pierre, 2004. "Intergenerational altruism and neoclassical growth models," Working Paper Series 0386, European Central Bank.
- Arrondel, Luc & Masson, Andre, 2006.
"Altruism, exchange or indirect reciprocity: what do the data on family transfers show?,"
Handbook on the Economics of Giving, Reciprocity and Altruism,
- Luc Arrondel & André Masson, 2002. "Altruism, Exchange or Indirect Reciprocity: What do the Data on Family Transfers Show?," DELTA Working Papers 2002-18, DELTA (Ecole normale supérieure).
- Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2008.
"The Intergenerational Transmission of Risk and Trust Attitudes,"
CESifo Working Paper Series
2307, CESifo Group Munich.
- Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2012. "The Intergenerational Transmission of Risk and Trust Attitudes," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 645-677.
- Dohmen, Thomas & Falk, Armin & Huffman, David B. & Sunde, Uwe, 2006. "The Intergenerational Transmission of Risk and Trust Attitudes," IZA Discussion Papers 2380, Institute for the Study of Labor (IZA).
- Dohmen, Thomas J & Falk, Armin & Huffman, David & Sunde, Uwe, 2008. "The Intergenerational Transmission of Risk and Trust Attitudes," CEPR Discussion Papers 6844, C.E.P.R. Discussion Papers.
- Dohmen, Thomas J. & Falk, Armin & Huffman, David & Sunde, Uwe, 2012. "The intergenerational transmission of risk and trust attitudes," Munich Reprints in Economics 20051, University of Munich, Department of Economics.
- Arrondel, L. & Masson, A. & Pestieau, P., 1996. "Bequest and inheritance: empirical issues and France-U.S. comparison," DELTA Working Papers 96-19, DELTA (Ecole normale supérieure).
- Donald Cox & Serena Ng & Andreas Waldkirch, 2000.
"Intergenerational Linkages in Consumption Behavior,"
Econometric Society World Congress 2000 Contributed Papers
1791, Econometric Society, revised 08 Nov 2000.
- Andreas Waldkirch & Serena Ng & Donald Cox, 2004. "Intergenerational Linkages in Consumption Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
- Donald Cox & Serena Ng & Andreas Waldkirch, 2000. "Intergenerational Linkages in Consumption Behavior," Boston College Working Papers in Economics 482, Boston College Department of Economics.
- Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
- Rapoport, Hillel & Vidal, Jean-Pierre, 2007.
"Economic growth and endogenous intergenerational altruism,"
Journal of Public Economics,
Elsevier, vol. 91(7-8), pages 1231-1246, August.
- Hillel Rapoport & Jean-Pierre Vidal, 2003. "Economic Growth and Endogenous Intergenerational Altruism," Working Papers 2003-04, Bar-Ilan University, Department of Economics.
- Kerwin Kofi Charles & Erik Hurst, 2003.
"The Correlation of Wealth across Generations,"
Journal of Political Economy,
University of Chicago Press, vol. 111(6), pages 1155-1182, December.
- Kirchsteiger, Georg & Sebald, Alexander, 2006.
"Investments into Education - Doing as the Parents Did,"
CEPR Discussion Papers
5686, C.E.P.R. Discussion Papers.
- Kirchsteiger, Georg & Sebald, Alexander, 2010. "Investments into education--Doing as the parents did," European Economic Review, Elsevier, vol. 54(4), pages 501-516, May.
- Georg Kirchsteiger & Alexander Sebald, 2010. "Investments into Education - Doing as the Parents Did," ULB Institutional Repository 2013/149588, ULB -- Universite Libre de Bruxelles.
- Nancy A. Jianakoplos & Paul L. Menchik, 1997. "Wealth Mobility," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 18-31, February.
- Wilhelm, Mark Ottoni & Brown, Eleanor & Rooney, Patrick M. & Steinberg, Richard, 2008. "The intergenerational transmission of generosity," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2146-2156, October.
- LAMBRECHT, StÃ©phane & MICHEL, Philippe & THIBAULT, Emmanuel, 2005.
"Capital accumulation and fiscal policy in an OLG model with family altruism,"
CORE Discussion Papers
2005027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Stéphane Lambrecht & Philippe Michel & Emmanuel Thibault, 2006. "Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(3), pages 465-486, 08.
- Becker, Gary S & Mulligan, Casey B, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 729-58, August.
- Luc Arrondel, 2009. ""My Father was right": The transmission of values between generations," PSE Working Papers halshs-00566808, HAL.
- Luc Arrondel & Cyril Grange, 2006. "Transmission and inequality of wealth: An empirical study of wealth mobility from 1800 to 1938 in France," Journal of Economic Inequality, Springer, vol. 4(2), pages 209-232, August.
- Manuel Toledo, 2006. "On the Intergenerational Persistence of Work Hours," 2006 Meeting Papers 226, Society for Economic Dynamics.
When requesting a correction, please mention this item's handle: RePEc:rwi:repape:0318. 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: (Sabine Weiler)
If references are entirely missing, you can add them using this form.