Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300357 
Year of Publication: 
2024
Series/Report no.: 
IFS Working Papers No. 24/02
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
We use administrative data for Norway to estimate an incomplete-market life-cycle model of retired singles and couples with a bequest motive, health-dependent utility, and uncertain longevity and health. We allow the parameters of the bequest utility to differ between households with and without offspring. Our estimates imply a very strong utility of residual wealth (bequest motive), in line with the estimates by Lockwood (2018). The bequest motive accounts for approximately three-quarters of aggregate wealth at age 85. More surprisingly, we estimate similar utility of residual wealth for households with and without offspring. We interpret this as, prima facie, evidence that the utility of residual wealth represents forces beyond an altruistic bequest motive.
Subjects: 
Savings
Wealth
Elderly
Estimation
Norway
JEL: 
D11
D12
D14
E21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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