Bequests and other capital transfers
Working group on bequests and other capital transfers
Current NTA estimates do not consider bequests and other capital transfers as part of the system of flow accounts. There are several reasons for this omission: these transfers are rare events –almost as rare as winning the lottery, these transfers probably do not fund consumption nor affect the life cycle deficit, and their probable effect is restricted mostly to generational savings and dis-savings. However, there are also several reasons to consider integrating these transfers into NTA: (1) bequests can help us to understand asset accumulation and asset income (for example among young people), (2) bequests may be a powerful driving force of savings behavior especially at old ages, and (3) bequests might be an important component of generational exchanges.
Participants in this working group are invited to contribute (short communications/ presentations) to the following, among other, research issues around bequests and capital transfers:
- Existing literature and data sets.
- Should NTA include bequests and other capital transfers in the flow accounts of generational economy? How?
- Empirical data and models to estimate the magnitude and age profile of out-transfer bequests.
- Empirical data and models to estimate the magnitude and age profile of in-transfer bequests.
- Complications to study bequests: trust funds, life insurance, inherited pensions, deceased with no heirs…
- Defining a research agenda for the coming year.
This working group will brain storm on topics that are quite exploratory and preliminary.
NTA members wanting to participate in this working group send a message as soon as possible to Luis Rosero-Bixby indicating their interest and whether they could contribute with some short communication.
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