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...

Data suggest the distribution of wealth among households in the United States and the United Kingdom has become more equal over the last century - though the pattern may have reversed recently. This paper shows that a model in which all households save for life-cycle reasons and some for...

This paper formulates an overlapping generations model with both life-cycle saving and altruistic bequests. For a given distribution of earning abilities, the model generates a stationary steady-state capital-to-labor ratio for the economy as a whole and a stationary distribution of net worth...

Two of the most basic frameworks which economists use for analyzing national saving and private wealth accumulation are the life-cycle model (e.g., Modigliani [1986]) and the so-called altruistic or dynastic model (e.g., Barro [1974] and Becker [1974]). In the first, households care about their...