Intergenerational altruism and house prices: Evidence from bequest tax reforms in Italy

Bellettini, G.; Taddei, Filippo; Zanella, Giulio

doi:10.1016/j.euroecorev.2016.11.006

Cited by 6 publications

(3 citation statements)

References 14 publications

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“…To more accurately measure the influence of egoistic bequest motives with varying strengths on the willingness of the elderly to engage in reverse mortgages, this study set four binary dummy variables: D1( Egoism ), D2( Egoism ), D3( Egoism ), and D4( Egoism ). With the ‘no egoistic bequest motive’ as the benchmark, when the four binary dummy variables sequentially take the value of 1, they indicate, respectively, ‘weak egoistic bequest motive’, ‘neutral egoistic bequest motive’, ‘relatively strong egoistic bequest motive’, and ‘strong egoistic bequest motive’.2Altruistic bequest motive ( Altruistic ): Several studies (Giulio et al ., 2013; Bellettini et al ., 2017) indicate that the bequest behavior of parents, particularly in Asian countries, is more indicative of the altruistic motive than of the other types. Parents prioritize the happiness of their children and leave their wealth to their children without necessarily expecting anything in return so as to realize intergenerational wealth transmission.…”

Section: Methodsmentioning

confidence: 99%

“…Bellettini et al . (2017) also find that parents tend to bequeath wealth to their children with low economic status: the bequest behavior of parents is motivated by their desire to ensure, first, the happiness of their children and they thus bequeath wealth to them without expecting anything in return in an effort to realize intergenerational wealth transfer. Currently, wealth accumulation by parents, particularly in East Asian countries, is greatly influenced by the altruistic bequest motive.…”

Section: Theoretical Analysis and Research Hypothesesmentioning

confidence: 99%

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Influence of Egoistic and Altruistic Bequest Motives on the Willingness to Participate in Reverse Mortgages in China*

Han¹,

Wang

Dong³

2020

Asian Economic Journal

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From the perspective of behavioral economics, this study uses a scenario simulation experiment and the ordered‐probit econometric model to empirically analyze the influence of egoistic and altruistic bequest motives of the elderly on willingness to participate in reverse mortgages. The findings are as follows. (i) When controlling for the demographic characteristics of the elderly, the marginal probability of their willingness to participate in reverse mortgages is influenced by two constraints: the egoistic bequest motive and the altruistic bequest motive. However, compared with the egoistic bequest motive, the altruistic bequest motive more strongly affects such willingness. (ii) Improving satisfaction with community old‐age services can significantly weaken the effects of the egoistic bequest motive on the willingness to participate in reverse mortgages, generally by weakening dependence on family old‐age care. However, property tax implementation can significantly reduce the constraint effects of altruistic bequest motives on such willingness, mainly by affecting the cost of housing inheritance to the children. (iii) To increase demand for reverse mortgages, financial institutions should constantly innovate and optimize the operation modes of reverse mortgages to more efficiently cope with the influence of egoistic and altruistic bequest motives of the elderly. Government departments should continuously promote property tax reform and improve the quality of community services for the aged to indirectly promote willingness to participate in reverse mortgages.

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Section: Methodsmentioning

confidence: 99%

Section: Theoretical Analysis and Research Hypothesesmentioning

confidence: 99%

Influence of Egoistic and Altruistic Bequest Motives on the Willingness to Participate in Reverse Mortgages in China*

Han¹,

Wang

Dong³

2020

Asian Economic Journal

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“…) is between 0.37 and 0.49. Using data from Italy, Bellettini et al (2017) estimate the degree of intergenerational altruism in a Barro-type OLG model and find that it ranges between 0.2 and 0.3. where…”

Section: Firmsmentioning

confidence: 99%

Capital taxation with parental incentives

Saito

Takeda

2022

J Public Economic Theory

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This paper studies capital taxation in an overlapping generation model where parents regard their children as impatient. The intergenerational time‐preference heterogeneity leads parents to engage in parental monetary transfers designed to encourage their children's asset accumulation (i.e., parental transfers which amount are contingent on the children's savings). In this setup, the utilitarian government's time preference is higher than that of the child generation but lower than that of the parent generation. Hence, from the government's perspective, the strategic parental transfers give too many incentives to accumulate assets. As a result, the government imposes a positive marginal tax on assets to disincentivize the younger generation's saving motives. By contrast, if parents do not have paternalistic preferences and do not make strategic parental transfers, the government imposes a zero marginal tax on assets.

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A relay race: intergenerational transmission of housing inequality in urban China

2019

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Intergenerational altruism and house prices: Evidence from bequest tax reforms in Italy

Cited by 6 publications

References 14 publications

Influence of Egoistic and Altruistic Bequest Motives on the Willingness to Participate in Reverse Mortgages in China*

Influence of Egoistic and Altruistic Bequest Motives on the Willingness to Participate in Reverse Mortgages in China*

Capital taxation with parental incentives

A relay race: intergenerational transmission of housing inequality in urban China

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