 THE IMPACT OF BEQUESTS ON LIFETIME WEALTH ACCUMULATION: AN ECONOMETRIC STUDY OF TWO GENERATIONS OF RURAL HOUSEHOLDS IN INDIAAnil Deolalikar () and R. P. Singh Review of Income and Wealth, 1990, vol. 36, issue 4, 353-364 Abstract: Using retrospective data on bequest receipts and wealth over two generations of rural Indian households, we have estimated the effect of bequest receipts on the lifetime wealth accumulation of recipients. We exploit the availability of data on two generations of the same household by estimating a family fixed effects model that controls for unobserved, intergenerationally‐persistent household endowments. Our results suggest an adverse impact of bequest receipts on the wealth accumulation of recipients. This effect is much more negative for the current generation of household heads than for the previous generation, indicating that the disincentive effects associated with bequest receipts have increased substantially over a generation. Such disincentive effects are consistent with the commonly‐observed phenomenon of “regression to the mean.” The empirical results also show that the positive association between schooling and wealth accumulation has strengthened substantially over the course of a generation, implying rising returns to schooling. Date: 1990 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:revinw:v:36:y:1990:i:4:p:353-364 Ordering information: This journal article can be ordered from Access Statistics for this article Review of Income and Wealth is currently edited by Conchita D'Ambrosio and Robert J. Hill More articles in Review of Income and Wealth from International Association for Research in Income and Wealth Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.