Why Do People Leave Bequests? For Love or Self-Interest? Evidence from a New International Survey of Bequest Plans

Charles Horioka ()

No 201406, UP School of Economics Discussion Papers from University of the Philippines School of Economics

Abstract: This paper discusses three alternative assumptions concerning household preferences (altruism, self-interest, and a desire for dynasty building) and shows that these assumptions have very different implications for bequest motives and bequest division. After reviewing some of the literature on actual bequests, bequest motives, and bequest division, the paper presents data on the strength of bequest motives, stated bequest motives, and bequest division plans from a new international survey conducted in China, India, Japan, and the United States. It finds striking inter-country differences in bequest plans, with the bequest plans of Americans and Indians appearing to be much more consistent with altruistic preferences than those of the Japanese and Chinese and the bequest plans of the Japanese and Chinese appearing to be much more consistent with selfish preferences than those of Americans and Indians. These findings have important implications for the efficacy and desirability of stimulative fiscal policies, public pensions, and inheritance taxes.

Keywords: Bequests; inheritances; estates; inter vivos transfers; intergenerational transfers; bequest motives; bequest division; equal division; altruism; selfishness; selfish life cycle model; altruism model; dynasty model; primogeniture; selfish exchange model; culture; religiosity; religion (search for similar items in EconPapers)
JEL-codes: D12 D14 D64 D91 E21 H31 J14 P52 Z12 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2014-05
New Economics Papers: this item is included in nep-mac and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as UPSE Discussion Paper No. 2014-06 R, May 2014

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Persistent link: https://EconPapers.repec.org/RePEc:phs:dpaper:201406

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