Intergenerational Transfers and the Accumulation of Wealth

  • William G Gale
    Research Associate, The Brookings Institution, Washington, D.C..
  • John Karl Scholz
    Assistant Professor, Department of Economics and LaFollette Institute of Public Affairs, University of Wisconsin, Madison, Wisconsin.

書誌事項

公開日
1994-11-01
DOI
  • 10.1257/jep.8.4.145
公開者
American Economic Association

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<jats:p> This paper uses household data to provide direct estimates of intergenerational transfers as a source of wealth. The authors distinguish between intended transfers (for example, gifts to other households) and possibly unintended transfers (bequests) and estimate that intended transfers account for at least 20 percent of net worth. Thus, a significant portion of the U.S. wealth cannot be explained by the life-cycle model, even when the model is augmented to allow for bequests. Estimated bequests can account for an additional 31 percent of net worth. The authors also show that transfers among living people are about half as large as bequests. </jats:p>

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