Expected Bequests and Current Wealth of Older Households

Christelis, Dimitris; Weber, Guglielmo

doi:10.2139/ssrn.1730233

Expected Bequests and Current Wealth of Older Households

Netspar Discussion Paper No. 10/2010-074

44 Pages Posted: 24 Dec 2010 Last revised: 17 Mar 2011

See all articles by Dimitris Christelis

Dimitris Christelis

Adam Smith Business School, University of Glasgow; Centre for Studies in Economics and Finance (CSEF), University of Naples Federico II; Center for Financial Studies (CFS); Netspar

Guglielmo Weber

University of Padua - Department of Economics; Centre for Economic Policy Research (CEPR); Institute for Fiscal Studies (IFS)

Date Written: October 16, 2010

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.

Keywords: Household Saving, Bequests, Expectations

JEL Classification: E21, D91, D84

Suggested Citation: Suggested Citation

Christelis, Dimitrios and Weber, Guglielmo, Expected Bequests and Current Wealth of Older Households (October 16, 2010). Netspar Discussion Paper No. 10/2010-074. Available at SSRN: https://ssrn.com/abstract=1730233 or http://dx.doi.org/10.2139/ssrn.1730233