Affiliation:
1. Tilburg University, the Netherlands
Abstract
Abstract
I analyze the inter vivo transfers and bequest decisions of 700,000 individuals during a period when the decision maker receives negative news regarding their life expectancy. The event that initiates the news is a health outcome. Expected mortality increases both the likelihood of transferring wealth to the next generation and the amount transferred. The size of the inter vivo transfer and bequest are positively related to the wealth of the parent and the severity of the diagnosis, regardless of diagnosis-specific demand for informal care. Using a structural life cycle model, I estimate the bequest parameters that are consistent with the causal effect estimates.
Publisher
Oxford University Press (OUP)
Subject
Economics and Econometrics,Finance,Accounting
Reference54 articles.
1. The joy of giving or assisted living? Using strategic surveys to separate public care aversion from bequest motives;Ameriks,;Journal of Finance,2011
2. The household finance landscape in emerging economies;Badarinza,;Annual Review of Financial Economics,2019
3. International comparative household finance;Badarinza,;Annual Review of Economics,2016
4. Evaluating long-term care policy options, taking the family seriously;Barczyk,;Review of Economic Studies,2018
5. Are government bonds net wealth?;Barro,;Journal of Political Economy,1974