Planned and Unplanned Bequests / Daniel S. Hamermesh, Paul L. Menchik.

Format:

Book

Author/Creator:

Hamermesh, Daniel S.

Contributor:

National Bureau of Economic Research.

Menchik, Paul L.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1496.

NBER working paper series no. w1496

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1984.

Summary:

We make the distinction between bequests that are planned as part of some lifetime optimization stemming from a bequest motive, and those that are unplanned and result when the date of death differs from what the consumer might forecast. Lifetime optimization should lead to a negative effect or no effect of the expected horizon on the size of the bequest, and to a negative relation between unexpectedly long life and the bequest. Using data on wealthy decedents and their parents, we form measures of the expected horizon based on parents' longevity. There is no relation between unexpectedly early or late death and the bequest, but a significant positive relation between the bequest and the length of the horizon. Several explanations for this unforeseen result are offered, including the inference that uncertainty about length of life is important in studying bequest behavior.

Notes:

Print version record

November 1984.