Gifts, Lies and Bequests
Recent empirical work on intergenerational transfers has shown that: i) parents prefer to transfer resources to their children using bequests rather than inter vivos transfers (gifts), and ii) bequests tend to be divided equally, while gifts tend to be directed towards the less well-off children. In this note, we present a theoretical model of the altruistic family with heterogeneous children which does not contradict either i) or ii). In our setting, i) follows because bequests are more e¢cient than gifts: these are negatively related to the children’s reported income (true income cannot be observed) and therefore distort the effort supply decisions as well as inducing underreporting. As for ii), we propose two arguments. First, market imperfections make bequests, which come late in life, a rather ineffective redistributive tool, so that it may be pointless to differentiate them. Second, imposing the constraint that bequest have to be equal is not necessarily costly in welfare terms and permits to avoid the the psychic costs or the loss of reputation associated with unequal giving.
|Date of creation:||Oct 2000|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.carloalberto.org/child-collegiocarloalberto/
More information through EDIRC
References listed on IDEAS
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.:
- Stefan Hochguertel & Henry Ohlsson, 2000.
"Compensatory inter vivos gifts,"
Economics Working Paper Archive
wp_319, Levy Economics Institute.
- Hochguertel , Stefan & Ohlsson, Henry, 2000. "Compensatory inter vivos gifts," Working Papers in Economics 31, University of Gothenburg, Department of Economics.
- Stefan Hochguertel & Henry Ohlsson, 2001. "Compensatory Inter Vivos Gifts," Macroeconomics 0012006, EconWPA.
- Stefan Hochguertel & Henry Ohlsson, 2007. "Compensatory Inter Vivos Gifts," Tinbergen Institute Discussion Papers 07-074/3, Tinbergen Institute.
- Stefan Hochguertal & Henry Ohlsson, 2000. "Inter Vivos Gifts: Compensatory or Equal Sharing?," Econometric Society World Congress 2000 Contributed Papers 0699, Econometric Society.
- Shleifer, Andrei & Summers, Lawrence H. & Bernheim, B. Douglas, 1986.
"The Strategic Bequest Motive,"
3721794, Harvard University Department of Economics.
- Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1985. "The Strategic Bequest Motive," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1045-76, December.
- Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986. "The Strategic Bequest Motive," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S151-82, July.
- Cigno, Alessandro & C. Giannelli, Gianna & Rosati, Furio C., 1998. "Voluntary transfers among Italian households: altruistic and non-altruistic explanations," Structural Change and Economic Dynamics, Elsevier, vol. 9(4), pages 435-451, December.
- Lundholm, Michael & Ohlsson, Henry, 1999.
"Post Mortem Reputation, Compensatory Gifts and Equal Bequests,"
Working Paper Series
1999:3, Uppsala University, Department of Economics.
- Lundholm, Michael & Ohlsson, Henry, 2000. "Post mortem reputation, compensatory gifts and equal bequests," Economics Letters, Elsevier, vol. 68(2), pages 165-171, August.
- Lundholm, M. & Ohlsson, H., 1999. "Post Mortem Reputation, Compensatory Gifts and Equal Bequests," Papers 1999:3, Uppsala - Working Paper Series.
- Lundholm, Michael & Ohlsson, Henry, 1999. "Post Mortem Reputation, Compensatory Gifts and Equal Bequests," Research Papers in Economics 1999:1, Stockholm University, Department of Economics.
- CREMER, Helmuth & KESSLER, Denis & PESTIEAU, Pierre, .
"Intergenerational transfers within the family,"
CORE Discussion Papers RP
-970, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Helmuth Cremer & Pierre Pestieau, 1996.
"Bequests as a heir "discipline device","
Journal of Population Economics,
Springer, vol. 9(4), pages 405-414.
- Cremer, H. & Pestieau, P., . "Bequests as a heir ``discipline device''," CORE Discussion Papers RP -1239, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- CREMER, Helmuth & PESTIAU, Pierre, 1993. "Bequests as a heir : "Discipline device"," CORE Discussion Papers 1993041, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
When requesting a correction, please mention this item's handle: RePEc:wpc:wplist:wp01_00. 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: (Giovanni Bert)
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.