Aspirations, habit formation, and bequest motive
Alonso Carrera, Jaime (Universidad de Vigo)
Caballé, Jordi (Universitat Autònoma de Barcelona)
Raurich, Xavier (Universitat de Girona)

Imprint:	CREA-Barcelona Economics, 2004
Description:	28 pàg.
Abstract:	We analyze how the presence of endogenous preferences affects the altruistic bequest motive from parents to children. We will show that the existence of habits raises the threshold value of the intergenerational discount factor above which altruistic bequests are positive, while aspiration formation could push this value down. Therefore, the dynamic inefficiency of the economy with no altruism is not sufficient to prevent the bequest motive from being operative under aspiration formation. We also discuss the implications of public debt when the bequest motive is inoperative and preferences exhibit habit and aspiration formation.
Grants:	Ministerio de Ciencia y Tecnología SEC2003-00306 Ministerio de Ciencia y Tecnología BEC2002-01995 Generalitat de Catalunya 2001 / SGR-00162
Note:	Altres ajuts: Xunta de Galícia-PGIDIT03PXIC30001PN
Rights:	Tots els drets reservats.
Language:	Anglès
Series:	CREA working paper; 136
Document:	Working paper ; recerca ; Article ; Versió publicada
Subject:	Aspirations ; Habits ; Bequests
Published in:	CREA Centre de Referència en Economia Analítica Working Paper Series, 2004

Adreça alternativa: https://bse.eu/research/working-papers/aspirations-habit-formation-and-bequest-motive

28 p, 333.0 KB

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