Download or read book Bequest Behavior and the Effect of Heirs Earnings written by Mark O. Wilhelm and published by . This book was released on 1993 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Inheritance Taxation and Wealth Effects on the Labor Supply of Heirs written by Fabian Kindermann and published by . This book was released on 2018 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: The taxation of bequests can have a positive impact on the labor supply of heirs through wealth effects. This leads to an increase in future labor income tax revenue on top of direct bequest tax revenue. We first show in a theoretical model that a simple back-of-the-envelope calculation, based on existing estimates for the reduction in earnings after wealth transfers, fails: the marginal propensity to earn out of unearned income is not a sufficient statistic for the calculation of this effect because (i) heirs anticipate the reduction in net bequests and adjust their labor supply already prior to inheriting, and (ii) when bequest receipt is stochastic, even those who ex post end up not inheriting anything respond ex ante to the implied change in their distribution of net bequests. We quantitatively elaborate the size of the overall revenue effect due to labor supply changes of heirs by using a state of the art life-cycle model that we calibrate to the German economy. Besides the joint distribution of income and inheritances, quasi-experimental evidence regarding the size of wealth effects on labor supply is a key target for this calibration. We find that for each Euro of bequest tax revenue the government mechanically generates, it obtains an additional 9 Cents of labor income tax revenue (in net present value) through higher labor supply of (non-)heirs.

Download or read book Death and Dollars written by Alicia H. Munnell and published by Rowman & Littlefield. This book was released on 2004-05-13 with total page 444 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite the recent downturn in the stock market, the 1990s boom and the shift to defined contribution plans mean that more individuals will have significant wealth upon retirement. How they use that wealth will determine not only their own well-being, but also the living standards of their children, the resources available to philanthropies, and the level of investment capital in the economy. This volume explores the reasons why people save, how they decide to allocate their wealth once they retire, and how givers select their beneficiaries. It also assesses the extent to which the estate tax and annuitization of retirement wealth affects the amount and nature of wealth transfers. Finally, it looks at the impact of wealth transfers––first on the amount of aggregate saving and capital accumulation, and then on the distribution of wealth among households. Several conclusions emerge. First, gifts and bequests are important; they may account for about half of total wealth in America. Second, rich people make most of the wealth transfers. They are thoughtful about how much they pay in taxes and how they dispose of their wealth. They care about philanthropic causes and view their charitable contributions as more than a way to avoid paying estate taxes. Third, most nonrich people probably have some lexicographic preferences about the disposition of their wealth; they want to ensure they have adequate resources to take care of their own needs, and if money is left over, they would like it to go to their children. Fourth, little support has emerged for the pure altruistic model of bequests. Fifth, institutions matter. In the case of the rich, the estate tax probably reduces saving and increases bequests to charity. In the case of the nonrich, the shift to defined contribution plans will at a minimum mean that they have more wealth in their hands when they die, and therefore they will leave larger accidental bequests. It might also increase their interest in lea

Download or read book Bequests Inheritances and Family Traditions written by Donald Cox and published by . This book was released on 2009 with total page 71 pages. Available in PDF, EPUB and Kindle. Book excerpt: Do quot;family traditionsquot; influence bequest behavior? If an individual receives an inheritance from his parents, is he more likely to give a bequest to his children, even after controlling for the boost in wealth conferred by the inheritance? Family traditions are pertinent to a host of issues connected with intergenerational transfers: Ricardian equivalence and crowding out, the role of bequests in wealth accumulation, and the responsiveness of bequests to tax changes. Traditions also matter for issues related to behavioral economics, such as mental accounts, social learning, and the intergenerational transmission of values. Partially due to the paucity of data, few studies to date have analyzed bequests in conjunction with inheritances. We draw upon the U.S. Health and Retirement Survey, one of the few data sets with comprehensive information on both bequests and inheritances. We find that receipt of inheritances and intended bequests are positively and significantly related (both behaviorally and statistically) even after controlling for a host of household characteristics, most importantly household net worth. Discerning how to label this partial correlation is a daunting task. We provide a precise definition of quot;family traditionsquot; and we show how they differ from other channels of influence. Our explanation of the nuances of traditions hinges on measuring the flexibility of bequest plans when wealth or other circumstances change. (For instance, will a wealth shortfall have a smaller impact on an inheritor who may be attempting to carry on a family tradition?) We find evidence in support of the idea that the propensity to bequeath out of wealth differs depending upon whether current wealth is large or small relative to inheritances received. We conclude that economists interested in intergenerational transfers should pay attention to the role of family traditions in bequest behavior.

Download or read book Planned and Unplanned Bequests written by Daniel S. Hamermesh and published by . This book was released on 1984 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Effects of the Federal Estate Tax on Farms and Small Businesses written by United States. Congressional Budget Office and published by . This book was released on 2005 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Saving Bequests Altruism and Life cycle Planning written by Laurence J. Kotlikoff and published by MIT Press. This book was released on 2001-06-22 with total page 596 pages. Available in PDF, EPUB and Kindle. Book excerpt: This collection of essays, coauthored with other distinguished economists, offers new perspectives on saving, intergenerational economic ties, retirement planning, and the distribution of wealth. The book links life-cycle microeconomic behavior to important macroeconomic outcomes, including the roughly 50 percent postwar decline in America's rate of saving and its increasing wealth inequality. The book traces these outcomes to the government's five-decade-long policy of transferring, in the form of annuities, ever larger sums from young savers to old spenders. The book presents new theoretical and empirical analyses of altruism that rule out the possibility that private intergenerational transfers have offset those by the government.While rational life-cycle behavior can explain broad economic outcomes, the book also shows that a significant minority of households fail to make coherent life-cycle saving and insurance decisions. These mistakes are compounded by reliance on conventional financial planning tools, which the book compares with Economic Security Planner (ESPlanner), a new life-cycle financial planning software program. The application of ESPlanner to U.S. data indicates that most Americans approaching retirement age are saving at much lower rates than they should be, given potential major cuts in Social Security benefits.

Download or read book Incentive Effects of Inheritances and Optimal Estate Taxation written by Wojciech Kopczuk and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: I consider nonlinear taxation of income and bequests with a joy-of-giving bequest motive and explicitly characterize the estate tax rate structure that maximizes social planner's welfare function. The solution trades off correction of externality from giving and discouraging effort of children due to income effect generated by bequests. The analysis shows that optimality of a positive tax on bequests in this context rests on the strength of the effect of bequests on behavior of future generations, and suggests that inheritance rather than estate tax is better suited to implement the corresponding policy.

Download or read book Inheriting Wealth in America written by Edward N. Wolff and published by Oxford University Press. This book was released on 2015-01-27 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inheritances are often regarded as a societal "evil," enabling great fortunes to be passed from one generation to another, thus exacerbating wealth inequality and reducing wealth mobility. Discussions of inheritances in America bring to mind the Vanderbilts, Rockefellers, and "trust fund babies"---people who receive enough money through inheritances or gifts that they do not have any need to work during their lifetime. Though these are, of course, extreme outliers, inheritances in America have a reputation for being a way the rich keep getting richer. In Inheriting Wealth in America, Edward Wolff seeks to counter these misconceptions with data and arguments that illuminate who inherits what in the United States and what results from these wealth transfers. Using data from the Survey of Consumer Finances---a triennial survey conducted by the Federal Reserve Board that contains detailed information on household wealth, inheritances, and gifts---as well as the Panel Study of Income Dynamics and a simulation model over years 1989 to 2010, Wolff reports six major findings on the state of inheritances in America. First, wealth transfers (inheritances and gifts) accounted for less than one quarter of household wealth. However, for persons age 75 and over, the figure was about two-fifths since they have more time to receive wealth transfers. Indirect evidence, derived from the simulation model, indicates a figure closer to two-thirds at end of life - probably the best estimate. Second, despite prognostications of a coming "inheritance boom," it has not materialized yet. Only a small (and statistically insignificant) uptick in average wealth transfers was observed over the period, and wealth transfers were actually down as a share of household wealth. Third, while wealth transfers are greater in dollar amount for richer households than poorer ones, they constitute a smaller share of the accumulated wealth of the rich. Fourth, contrary to popular belief, inheritances and gifts, on net, reduce wealth inequality rather than raising it. The rationale is that inheritances and particularly gifts typically flow from richer to poorer persons, thus lowering wealth inequality. Fifth, despite a rapid rise in income inequality, the inequality of wealth transfers shows no discernible time trend from 1989 to 2010, neither upward nor downward. Sixth, among the very wealthy, the share of wealth accounted for by wealth transfers is surprisingly low, only about a sixth, and this share has trended significantly downward over time. It is true that inheritances and gifts are unequal, with only one fifth of families receiving wealth transfers and these transfers benefitting the rich far more than the middle class and the poor. That, however, is not the whole picture of inheritances in America. Clearly-written and illuminating, this books expertly distills an abundance of data on inheritances into important takeaways for all who wonder about the current state of inheritances and gifts in the United States.

Download or read book Meeting the Needs of Children with Disabilities written by Laudan Y. Aron and published by The Urban Insitute. This book was released on 2007 with total page 436 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The complexity of government programs sometimes makes it difficult for children with disabilities to get the benefits they need. This can impede their health and development. This book suggests ways to improve the system. Its main focus on the three largest programs: special education, Supplemental Security Income, and Medicaid"--Provided by publisher.

Download or read book The American Dream and the Power of Wealth written by Heather Beth Johnson and published by Routledge. This book was released on 2014-11-20 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite the overwhelming evidence against them, many people still believe they can overcome the economic and racial constraints placed upon them at birth. In the first edition, Heather Beth Johnson explored this belief in the American Dream with over 200 in-depth interviews with black and white families, highlighting the ever-increasing racial wealth gap and the actual inequality in opportunities. This second edition has been updated to make it fully relevant to today’s reader, with new data and illustrative examples, including twenty new interviews. Johnson asks not just what parents are thinking about inequality and the American Dream, but to what extent children believe in the American Dream and how they explain, justify, and understand the stratification of American society. This book is an ideal addition to courses on race and inequality.

Download or read book Advances in Information and Communication written by Kohei Arai and published by Springer Nature. This book was released on with total page 721 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Oxford Handbook of Evolutionary Psychology and Parenting written by Viviana A. Weekes-Shackelford and published by Oxford University Press. This book was released on 2021 with total page 521 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The Oxford Handbook of Evolutionary Psychology and Parenting provides a comprehensive resource for work on how our evolutionary past informs current parenting roles and practices. It features chapters from leaders in the field covering state-of-the-art research. The Handbook is designed for advanced undergraduates, graduates, and professionals in psychology, anthropology, biology, sociology, and demography, as well as many other social and life science disciplines. It is the first resource of its kind that brings together empirical and theoretical contributions from scholarship at the intersection of evolutionary psychology and parenting. Each of the authors has a Ph.D. in evolutionary psychology and much of their research focuses on violence and conflict in families and romantic relationships"--

Download or read book Social Inequality written by Kathryn Neckerman and published by Russell Sage Foundation. This book was released on 2004-06-18 with total page 1044 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inequality in income, earnings, and wealth has risen dramatically in the United States over the past three decades. Most research into this issue has focused on the causes—global trade, new technology, and economic policy—rather than the consequences of inequality. In Social Inequality, a group of the nation's leading social scientists opens a wide-ranging inquiry into the social implications of rising economic inequality. Beginning with a critical evaluation of the existing research, they assess whether the recent run-up in economic inequality has been accompanied by rising inequality in social domains such as the quality of family and neighborhood life, equal access to education and health care, job satisfaction, and political participation. Marcia Meyers and colleagues find that many low-income mothers cannot afford market-based child care, which contributes to inequality both at the present time—by reducing maternal employment and family income—and through the long-term consequences of informal or low-quality care on children's educational achievement. At the other end of the educational spectrum, Thomas Kane links the growing inequality in college attendance to rising tuition and cuts in financial aid. Neil Fligstein and Taek-Jin Shin show how both job security and job satisfaction have decreased for low-wage workers compared with their higher-paid counterparts. Those who fall behind economically may also suffer diminished access to essential social resources like health care. John Mullahy, Stephanie Robert, and Barbara Wolfe discuss why higher inequality may lead to poorer health: wider inequality might mean increased stress-related ailments for the poor, and it might also be associated with public health care policies that favor the privileged. On the political front, Richard Freeman concludes that political participation has become more stratified as incomes have become more unequal. Workers at the bottom of the income scale may simply be too hard-pressed or too demoralized to care about political participation. Social Inequality concludes with a comprehensive section on the methodological problems involved in disentangling the effects of inequality from other economic factors, which will be of great benefit to future investigators. While today's widening inequality may be a temporary episode, the danger is that the current economic divisions may set in motion a self-perpetuating cycle of social disadvantage. The most comprehensive review of this quandary to date, Social Inequality maps out a new agenda for research on inequality in America with important implications for public policy.

Download or read book Inheritance and Wealth in America written by Robert K. Miller Jr. and published by Springer Science & Business Media. This book was released on 2013-11-11 with total page 233 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inheritance and Wealth in America is a superb collection of original essays, written in nontechnical language by experts in sociology, economics, anthropology, history, law, and other disciplines. Notable chapters provide - an outstanding interpretative history of inheritance in American legal thought - a critical review of the literature on the economics of inheritance at the household and societal levels - a superb history of Federal taxation of wealth transfers, and - a sociological examination of inheritance and its role in class reproduction and stratification. This groundbreaking work is of value to any researcher dealing with the transmission of wealth and privilege across generations.

Download or read book Inheritance in Contemporary America written by Jacqueline L. Angel and published by JHU Press. This book was released on 2008-01-28 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the baby boom generation on the cusp of retirement, life expectancies on the rise, and the nation’s cultural makeup in flux, the United States is faced with social and policy quandaries that demand attention. How are elders to balance the competing claims of helping family members during their lifetime, saving for old age, and planning estates? What roles should the state, family, and individuals play in supporting people during later life? Are new familial gift-giving trends sustainable, and, if so, what effects might they have on future generations? Inheritance in Contemporary America tackles the complex legal, policy, and emotional issues that surround bequests and inheritances in an era of increasing longevity, broadening ethnicity, and unraveling social safety nets. Through empirical analyses, case studies, interviews, and anecdotes, Jacqueline L. Angel explains the historical nature of familial giving and how it is changing as the nation’s demographics shift. She explores the legal, personal, and policy complexities involved in passing wealth down through generations and provides a cross-disciplinary context for exploring the indelible effects that newly unfolding inheritance practices will have on various societal cohorts and the nation in general. From nuclear and extended families to the state and nongovernmental bodies, Angel’s engaging study explores how attitudes toward giving are evolving and confronts in stark terms the legacy that these shifts in attitude will leave. This book will be a vital tool for scholars and practitioners in gerontology, sociology, psychology, anthropology, economics, political science, and public policy.

Download or read book Rethinking Estate and Gift Taxation written by William G. Gale and published by Rowman & Littlefield. This book was released on 2011-07-01 with total page 544 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although estate and gift taxes raise a small fraction of federal revenues, they have become sources of increasing political controversy. This book is designed to inform the current policy debate and build a conceptual basis for future scholarship. The book contains eleven original studies of estate and gift taxes, along with discussants' comments. The essays provide background and historical information; analyze the optimal taxation of estates and gifts; examine the effects of the tax on charitable contributions, saving behavior, the distribution and level of wealth, tax avoidance and tax evasion; and explore the effects of alternatives to estate taxation.