Expected Bequests and Current Wealth of Older Households

Christelis, D. and Weber, G. (2011) Expected Bequests and Current Wealth of Older Households. Working Paper. Social Science Research Network. (doi: 10.2139/ssrn.1730233).

Abstract

We use the subjective probabilities of bequests to be given in the future and current asset holdings, as reported in three household surveys (HRS, ELSA, and SHARE) covering thirteen countries, in order to assess whether, and to what extent, households plan to decumulate assets in old age. We model intended bequests as a function of household demographic and economic characteristics, and estimate their expected value using quasi-maximum likelihood methods. By comparing the current wealth holdings with the expected intended bequests we compute the pattern of future saving by households, and assess its cross-country variability with respect to housing wealth.

• Item Type: Research Reports or Papers (Working Paper)
• Keywords: Household saving, bequests, expectations.
• Status: Published
• Glasgow Author(s) Enlighten ID: Christelis, Professor Dimitris
• Authors: Christelis, D., and Weber, G.
• Subjects: H Social Sciences > HB Economic Theory
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Publisher: Social Science Research Network
• Published Online: 24 December 2010