This paper examines the role of bequests and inter vivos gifts in the U.S. economy, considering their importance in determining (i) the economy's aggregate capital stock, (ii) the distribution of private net worth, and (iii) public policy outcomes and options. It focuses on several recent...

This chapter discusses two theoretical frameworks that economists use to analyze links between households. The first is based on altruistic preferences and the second framework falls under the heading transactions cost approach. Altruistic and non-altruistic transfers can link together...