Working Paper: NBER ID: w2415
Authors: Michael D. Hurd; B. Gabriela Mundaca
Abstract: Using data from the 1964 Survey of the Economic Behavior of the Affluent, we estimate directly the fraction of household assets which come from inheritances and the fraction from gifts. These data are well suited for this calculation because the survey is heavily weighted toward households with high incomes, and because the respondents were directly asked about the sources of their wealth. We estimate that 15-202 of household wealth came from inheritances and 5-102 from gifts. Even in households with very high incomes, very few people say that a large fraction of their assets were inherited or were given to them. According to the responses in this survey, it is not creditable that as much as 50% of household assets came from gifts and inheritances. Using data from the 1983 Survey of Consumer Finances with high income supplement, we roughly confirm the 1964 results, although the 1983 data are much less complete than the 1964 data.
Keywords: inheritances; gifts; wealth accumulation; bequest motive; life cycle hypothesis
JEL Codes: D31; H24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Inheritances and gifts (H24) | Household wealth (G59) |
| Bequest motive (D64) | Saving behavior (D14) |
| Household wealth (G59) | Saving behavior (D14) |