Intergenerational Altruism: Estimates Based on News About Expected Mortality

55 Pages Posted: 14 Jun 2017 Last revised: 1 Dec 2020

Date Written: October 20, 2020

Abstract

This paper analyzes the inter-vivos transfers and bequest decisions of about 700,000 individuals during a period when the decision-maker receives negative news about future life expectancy. The event that produces the news is a negative health outcome. In line with models of dynastic utility maximization, increases in expected mortality increase the likelihood of transferring wealth to the next generation along both the intensive and the extensive margins. The size of the inter-vivos transfer and the bequest are positively related to the wealth of the parent and the severity of the diagnosis--irrespective of diagnosis-specific demand for informal care.

JEL Classification: D1, D14, D31, E21, I12

Suggested Citation

Kvaerner, Jens, Intergenerational Altruism: Estimates Based on News About Expected Mortality (October 20, 2020). Available at SSRN: https://ssrn.com/abstract=2985465 or http://dx.doi.org/10.2139/ssrn.2985465

Jens Kvaerner (Contact Author)

Tilburg University ( email )

Warandelaan 2
Tilburg, Noord-Brabant 4818HK
Netherlands
+4740242704 (Phone)

HOME PAGE: http://https://sites.google.com/site/jenskvaerner/

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