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Bequest Motives, Social Security, and Economic Growth
Author(s) -
Zhang Junsen,
Zhang Junxi
Publication year - 2001
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1093/ei/39.3.453
Subject(s) - bequest , economics , altruism (biology) , social security , microeconomics , fertility , outcome (game theory) , endogenous growth theory , labour economics , social psychology , population , sociology , psychology , human capital , economic growth , demography , political science , law , market economy
This article conducts a systematic analysis of four bequest motives in a simple model of endogenous growth. It analyzes how bequest motives affect fertility, savings, growth, and the effects of pay‐as‐you‐go Social Security. It is found that altruistic and exchange motives give equivalent outcomes if the discount factors are set the same. The outcome under the joy‐of‐giving motive may involve a higher bequest ratio, higher saving, and better growth rates than that under altruism. If bequests are accidental, the equilibrium values will depend on the probability of survival. Moreover, the results provide testable implications on bequest motives.