Junior is rich
Subtitle: bequests as consumption
By: George M. Constantinides, John B. Donaldson, Rajnish Mehra.
Contributors: Donaldson, John B.; Mehra, Rajnish.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11122; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11122.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Inheritance and succession -- Economic aspects.; Gifts to minors.; Securities.; Capital assets pricing model.; Consumption (Economics)
Description: "We explore the consequences for asset pricing of admitting a bequest motive into an otherwise standard overlapping generations model where agents trade equity and perpetual debt securities.  Prices of securities are seen to be approximately 50% higher in an economy with bequests as compared to an otherwise identical one where bequests are absent.  Robust estimates of the equity premium are obtained in several cases where the desire to leave bequests is modest relative to the desire for old age consumption"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 2/25/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.