Expected Bequests and Current Wealth of Older Households
44 Pages Posted: 24 Dec 2010 Last revised: 17 Mar 2011
Date Written: October 16, 2010
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.
Keywords: Household Saving, Bequests, Expectations
JEL Classification: E21, D91, D84
Suggested Citation: Suggested Citation