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Measuring Time Preference and Parental Altruism: Technical Paper 2000-7

Author

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  • Shinichi Nishiyama
Abstract
This paper extends a heterogeneous agent overlapping generations model by implementing bequests-both altruistic and accidental-and measures the degrees of time preference and parental altruism through the calibration of the model to the U.S. economy. In this model, a parent household and its adult child households behave consistently and strategically to determine their optimal consumption, working hours, and savings. Based on the obtained parameters, the paper also shows the individual effects of altruistic and accidental bequests on wealth accumulation by examining the

Suggested Citation

  • Shinichi Nishiyama, 2000. "Measuring Time Preference and Parental Altruism: Technical Paper 2000-7," Working Papers 13333, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:13333
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    File URL: https://www.cbo.gov/sites/default/files/106th-congress-1999-2000/workingpaper/20007_0.pdf
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    References listed on IDEAS

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    1. William G. Gale & John Karl Scholz, 1994. "Intergenerational Transfers and the Accumulation of Wealth," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 145-160, Fall.
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    6. Wilhelm, Mark O, 1996. "Bequest Behavior and the Effect of Heirs' Earnings: Testing the Altruistic Model of Bequests," American Economic Review, American Economic Association, vol. 86(4), pages 874-892, September.
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    10. Gouveia, Miguel & Strauss, Robert P., 1994. "Effective Federal Individual Tax Functions: An Exploratory Empirical Analysis," National Tax Journal, National Tax Association, vol. 47(2), pages 317-39, June.
    11. Menchik, Paul L & David, Martin, 1983. "Income Distribution, Lifetime Savings, and Bequests," American Economic Review, American Economic Association, vol. 73(4), pages 672-690, September.
    12. Abel, Andrew B, 1985. "Precautionary Saving and Accidental Bequests," American Economic Review, American Economic Association, vol. 75(4), pages 777-791, September.
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    Cited by:

    1. Soares, Jorge, 2015. "Borrowing constraints, parental altruism and welfare," Journal of Macroeconomics, Elsevier, vol. 45(C), pages 1-20.
    2. Shahar Rotberg, 2022. "The Implications Of Housing For The Design Of Wealth Taxes," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 125-159, February.
    3. Laitner, John, 2001. "Secular Changes in Wealth Inequality and Inheritance," Economic Journal, Royal Economic Society, vol. 111(474), pages 691-721, October.
    4. Mariacristina De Nardi, 2004. "Wealth Inequality and Intergenerational Links," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(3), pages 743-768.
    5. Shinichi Nishiyama, 2000. "Bequests, Inter Vivos Transfers, and Wealth Distribution: Technical Paper 2000-8," Working Papers 13332, Congressional Budget Office.
    6. Ahsan, Md Nazmul & Emran, M. Shahe & Shilpi, Forhad, 2024. "Complementarities and intergenerational educational mobility: Theory and evidence from Indonesia," Journal of Economic Behavior & Organization, Elsevier, vol. 225(C), pages 170-191.
    7. John Laitner, 2001. "Wealth Accumulation in the U.S.: Do Inheritances and Bequests Play a Significant Role?," Working Papers wp019, University of Michigan, Michigan Retirement Research Center.
    8. Kevin Wiseman & Ctirad Slavık, 2009. "Tough Love For Lazy Kids," 2009 Meeting Papers 1091, Society for Economic Dynamics.
    9. Shinichi Nishiyama, 2002. "Bequests, Inter Vivos Transfers, and Wealth Distribution," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 892-931, October.

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