When to Give? A Note on the Timing of Gifts and Bequests

Alain Jousten

National Institute Economic Review, 2006, vol. 198, issue 1, 112-120

Abstract: We generalise the standard joy-of-giving bequest motive by including inter vivos gifts. Within a life-cycle framework, we analyse the implications of the choice of different discount factors for the utility of gifts and bequests. For a linear utility of giving, we characterise the gift and bequest pattern of a liquidity constrained individual over the life-cycle. We find that discounting at the interest rate is very convenient as the linear utility parameter can be interpreted as a summary measure for the strength of the motive of giving, net of all gift and bequest timing issues over the life-cycle.

Keywords: Consumer economics theory; social security and public pensions (search for similar items in EconPapers)
Date: 2006
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Journal Article: When to Give? A Note on the Timing of Gifts and Bequests (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:niesru:v:198:y:2006:i:1:p:112-120

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