“Subjective inheritance expectations and economic outcomes”

by Stefania Basiglio, Maria Cristina Rossi, Arthur van Soest; CeRP WP 190/19

In this paper we investigate whether and to what extent inheritance expectations act as a driver of economic choices. We use the DHS dataset merged with a specific module on subjective probabilities on inheritance receiving and its amount foreseen in the next ten years. Hence, we analyze whether the expected inheritance acts as a deterrent to saving. Results suggest that individuals perceive the expected inheritances as a potential increase of personal wealth, which leads to a reduction in savings.
Expectations appear to matter also in the enhancement of the intention to bequeath and in future work versus leisure choices.

published May 2019