Review of Economic Studies Vol. 74 No. 1 2007
To Leave or Not to Leave: The Distribution of Bequest Motives
Abstract
We examine the effect of observed and unobserved heterogeneity in the desire to die with positive net worth. Using a structural life-cycle model nested in a switching regression with unknown sample separation, we find that roughly three-fourths of the elderly single population has abequest motive. Both the presence and the magnitude of the bequest motive are statistically and economically significant. On average, households with a bequest motive spend about 25% less on consumption expenditures. We conclude that, among the elderly single households in our sample, about four-fifths of their net wealth will be bequeathed and approximately half of this is due to a bequest motive.
- DOI
- 10.1111/j.1467-937x.2007.00419.x
- Volume
- 74
- Issue
- 1
- Pages
- 207-235
- Language
- en
- Sources
- bibtex:phds-export.bib crossref openalex