To leave or not to leave
Subtitle: the distribution of bequest motives
By: Wojciech Kopczuk and Joseph P. Lupton.
Contributors: Lupton, Joseph P.
Series: Finance and economics discussion series ;; 2004-33; Finance and economics discussion series (Online) ;; 2004-33.
Publisher: Federal Reserve Board
Published: 2004
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "In this paper, 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 70 percent of the elderly single population has a bequest motive that may or may not be active depending on the level of resources at a given age.  Both the presence and the magnitude of the bequest motive are statistically and economically significant.  All else being equal, households with an operative bequest motive spend between $4,000 and $9,000 a year less on consumption expenditures on average.  We conclude that, among the elderly single households in our sample, approximately half of bequeathed wealth will be due to a bequest motive"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 6/29/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.