Utility from accumulation
By: Louis Kaplow.
Contributors: John M. Olin Center for Law, Economics, and Business.
Series: Discussion paper -- no. 654; Discussion paper (John M. Olin Center for Law, Economics, and Business : Online) -- no. 654.
Publisher: Harvard Law School
Published: 2009
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Saving and investment -- Mathematical models; Saving and investment -- Psychological aspects; Legacies -- Psychological aspects; Gifts -- Psychological aspects
Description: "Abstract: The possibility that individuals may derive utility from the mere fact of holding wealth has long been recognized.  A simple intertemporal model featuring utility from accumulation is used here to examine consumption and savings, the choice between inter vivos gifts and bequests (both to descendants and to charities), and levels of annuitization.  Introducing utility from accumulation helps to explain a number of empirical regularities that otherwise seem inconsistent with optimizing behavior.  Moreover, because individuals who derive significant utility from accumulation will tend to save more and, in the long run, give more than others do, this source of utility may be especially important in analyzing savings behavior, gifts and bequests, and charitable contributions"--John M. Olin Center for Law, Economics, and Business web site.
Notes: Title from PDF file as viewed on 12/30/2009.

Includes bibliographical references.

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