Jellal, Mohamed and wolff, François charles (2002): Altruistic bequests with inherited tastes. Published in: International Journal of Business and Economics
Download (188kB) | Preview
This paper examines the altruistic model of bequest when a child inherits life standard aspirations from his parents. We prove that the impact of the aspiration effect on transfers can be positive or negative, depending on both the strength of inherited tastes and the coefficients of risk aversion for the parent and the child. However, numerical illustrations indicate that the case for a negative effect is rather weak. Using a French data set on transfers within the family,we investigate how transmission habits affect the level of private assistance. We show that parents are more likely to help their children when they have themselves received money from their own parents. Hence, any public program that affects current transfers also influences family transfers in the future
|Item Type:||MPRA Paper|
|Original Title:||Altruistic bequests with inherited tastes|
|Keywords:||altruism,bequest, inherited tastes, risk aversion|
|Subjects:||Z - Other Special Topics > Z1 - Cultural Economics; Economic Sociology; Economic Anthropology > Z13 - Economic Sociology; Economic Anthropology; Social and Economic Stratification
D - Microeconomics > D1 - Household Behavior and Family Economics
|Depositing User:||Mohamed Jellal|
|Date Deposited:||30. Apr 2012 02:07|
|Last Modified:||17. Feb 2013 22:37|
Altonji, J. G., F. Hayashi, and L. J. Kotlikoff, (1997), “Parental Altruism and Inter Vivos Transfers: Theory and Evidence,” Journal of Political Economy, 105, 1121-66.
Arrondel, L. and A. Laferrère, (2001), “Taxation and Wealth Transmission in France,” Journal of Public Economics, 79, 3-33.
Arrondel, L. and A. Masson, (2001), “Family Transfers Involving Three Generations,” Scandinavian Journal of Economics, 103, 415-443.
Arrondel, L. and F. C. Wolff, (1998), “La Nature Des Transferts Inter Vivos En France: Investissements Humains, Aides Financières et Transmission du Patrimoine,” Économie et Prévision, 135, 1-27.
Attias-Donfut, C. and F. C. Wolff, (2000), “The Redistributive Effects of Generational Transfers,” in The Myth of Generational Conflict: The Family and State in Ageing Societies, Arber, S. and C. Attias-Donfut, eds., London: Routledge,22-46.
Barro, R. J., (1974), “Are Government Bonds Net Wealth?” Journal of Political Economy, 82, 1095-1117.
Becker, G. S., (1991), A Treatise on the Family, Cambridge: Harvard University Press.
Becker, G. S., (1992), “Habits, Addictions and Traditions,” Kyklos, 45, 327-345.
Becker, G. S., (1993), “Nobel Lecture: The Economic Way of Looking at Behavior,” Journal of Political Economy, 101, 385-409.
Becker, G. S., (1996), Accounting for Tastes, Harvard University Press.
Behrman, J. R., R. A. Pollak, and P. Taubman, (1995), From Parent to Child: Intrahousehold Allocations and Intergenerational Relations in the United States, Chicago: University of Chicago Press.
Bisin, A. and T. Verdier, (2001), “The Economics of Cultural Transmission and the Dynamics of Preferences,” Journal of Economic Theory, 97, 298-319.
Cigno, A., G. Giannelli, and F. C. Rosati, (1998), “Voluntary Transfers among Italian Households: Altruistic and Non-altruistic Explanations,” Structural Change and Economic Dynamics, 9, 435-451.
Cox, D., (1987), “Motives for Private Income Transfers,” Journal of Political Economy, 95, 508-46.
Cox, D. and O. Stark, (1996), “Intergenerational Transfers and the Demonstration Effect,” mimeo, Boston College.
de la Croix, D., (1996), “The Dynamics of Bequeathed Tastes,” Economics Letters,51, 89-96.
de la Croix, D., (2001), “Standard-of-Living Aspirations and Economic Cycles,” in Advances in Macroeconomics, , Drèze J. H., ed., Proceedings of the Twelfth World Congress of the International Economic Association
de la Croix, D. and P. Michel, (1999), “Optimal Growth When Tastes are Inherited,” Journal of Economics Dynamics and Control, 23, 519-537.
Frank, R., (1989), “Frames of References and the Quality of Life,” American Economic Review, 79, 80-85.
Jellal, M. and F. C. Wolff, (2000), “Shaping Intergenerational Relationships: The Demonstration Effect,” Economics Letters, 68, 255-261.
Jellal, M. and F. C. Wolff, (2002), “Cultural Evolutionary Altruism: Theory and Evidence,” European Journal of Political Economy, 18, 241-262.
Kimball, M. S., (1990), “Precautionary Saving in the Small and in the Large,” Econometrica, 58, 53-73.
Laferrère, A. and F. C. Wolff, (2002), “Microeconomic Models of Family Transfers,”in Handbook on the Economics on Giving, Reciprocity and Altruism, Kolm, S. C. and J. Mercier-Ythier, eds., North-Holland: Elsevier, forthcoming.
Masson, A. and P. Pestieau, (1997), “Bequests Motives and Models of Inheritance:A Survey of the Literature," in Is inheritance legitimate? Erreygers, G. and T. Vandevelde, eds, Berlin: Springer-Verlag, 54-88.