Inherited Wealth and Demographic Aging
The role of inherited wealth in modern economies has increasingly come under scrutiny. This study presents one of the first attempts to shed light on how demographic aging could shape this role. It shows that, in the absence of retirement annuities...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/06/26543427/inherited-wealth-demographic-aging http://hdl.handle.net/10986/24656 |
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okr-10986-246562021-04-23T14:04:23Z Inherited Wealth and Demographic Aging Onder, Harun Pestieau, Pierre RETIREMENT ANNUITIES GENES ECONOMIC GROWTH RETIREES NOMINAL WAGE UTILITY FUNCTIONS OLD AGE MORTALITY DECLINE RETIREMENT NATURE INTEREST INCOME INTEREST RATE UTILITY MAXIMIZATION INDEXATION SURVIVAL RATE INTERGENERATIONAL TRANSFERS WELFARE HEALTH EQUILIBRIUM POLICY DISCUSSIONS EVOLUTION VARIABLES PUBLICATIONS WEALTH PENSION SURVIVAL SAVINGS POPULATION GROWTH FERTILITY RATES HETEROGENEITY INTEREST RATES PREFERENCES FERTILITY RATE LONGER LIVES OVERLAPPING GENERATIONS MODEL MORTALITY RATE SOCIAL SECURITY INHERITANCES PAY AS YOU GO UTILITY PENSION FUNDS MORTALITY PUBLIC PENSIONS ECONOMIC RESEARCH RESPECT PROGRESS CONSUMPTION OPPORTUNITY COST CAPITAL WAGES ANNUITIES WOMAN POLICY RESEARCH WORKING PAPER PENSIONS VALUE POPULATION GROWTH RATES EARLY DEATH PRODUCTION FUNCTIONS MACROECONOMICS SINGLE CHILD LONGEVITY RISKS UTILITY FUNCTION INCOME DISTRIBUTION CHANGES IN FERTILITY RETIREMENT SAVING PRIVATE PENSIONS POLICY PRODUCTION FUNCTION CHILDREN PER WOMAN FUNCTIONAL FORMS RETIREMENT SAVINGS TAXATION GOODS THEORY WARS ANNUITY WAR NUMBER OF CHILDREN LOWER FERTILITY UNCERTAINTY FUNDED PENSIONS POPULATION POLICY RESEARCH FERTILITY VARIANCE INHERITANCE RISK AVERSION LIFE SPANS PENSION PLANS HEALTHY LIFE PUBLIC PENSION MARGINAL UTILITY TERN ALTRUISM DEVELOPMENT POLICY PUBLIC GOODS The role of inherited wealth in modern economies has increasingly come under scrutiny. This study presents one of the first attempts to shed light on how demographic aging could shape this role. It shows that, in the absence of retirement annuities, or for a given level of annuitization, both increasing longevity and decreasing fertility should reduce the inherited share of total wealth in a given economy. Thus, aging is not likely to explain a recent surge in this share in some advanced economies. Shrinking retirement annuities, however, could offset and potentially reverse these effects. The paper also shows that aging could increase the size of individual bequests vis-à-vis real wages. However, these bequests will be more unequally distributed if aging is driven by a drop in fertility. In comparison, the effect of increasing longevity on their distribution in non-monotonic. 2016-07-11T15:52:45Z 2016-07-11T15:52:45Z 2016-06 Working Paper http://documents.worldbank.org/curated/en/2016/06/26543427/inherited-wealth-demographic-aging http://hdl.handle.net/10986/24656 English en_US Policy Research Working Paper;No. 7739 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
RETIREMENT ANNUITIES GENES ECONOMIC GROWTH RETIREES NOMINAL WAGE UTILITY FUNCTIONS OLD AGE MORTALITY DECLINE RETIREMENT NATURE INTEREST INCOME INTEREST RATE UTILITY MAXIMIZATION INDEXATION SURVIVAL RATE INTERGENERATIONAL TRANSFERS WELFARE HEALTH EQUILIBRIUM POLICY DISCUSSIONS EVOLUTION VARIABLES PUBLICATIONS WEALTH PENSION SURVIVAL SAVINGS POPULATION GROWTH FERTILITY RATES HETEROGENEITY INTEREST RATES PREFERENCES FERTILITY RATE LONGER LIVES OVERLAPPING GENERATIONS MODEL MORTALITY RATE SOCIAL SECURITY INHERITANCES PAY AS YOU GO UTILITY PENSION FUNDS MORTALITY PUBLIC PENSIONS ECONOMIC RESEARCH RESPECT PROGRESS CONSUMPTION OPPORTUNITY COST CAPITAL WAGES ANNUITIES WOMAN POLICY RESEARCH WORKING PAPER PENSIONS VALUE POPULATION GROWTH RATES EARLY DEATH PRODUCTION FUNCTIONS MACROECONOMICS SINGLE CHILD LONGEVITY RISKS UTILITY FUNCTION INCOME DISTRIBUTION CHANGES IN FERTILITY RETIREMENT SAVING PRIVATE PENSIONS POLICY PRODUCTION FUNCTION CHILDREN PER WOMAN FUNCTIONAL FORMS RETIREMENT SAVINGS TAXATION GOODS THEORY WARS ANNUITY WAR NUMBER OF CHILDREN LOWER FERTILITY UNCERTAINTY FUNDED PENSIONS POPULATION POLICY RESEARCH FERTILITY VARIANCE INHERITANCE RISK AVERSION LIFE SPANS PENSION PLANS HEALTHY LIFE PUBLIC PENSION MARGINAL UTILITY TERN ALTRUISM DEVELOPMENT POLICY PUBLIC GOODS |
| spellingShingle |
RETIREMENT ANNUITIES GENES ECONOMIC GROWTH RETIREES NOMINAL WAGE UTILITY FUNCTIONS OLD AGE MORTALITY DECLINE RETIREMENT NATURE INTEREST INCOME INTEREST RATE UTILITY MAXIMIZATION INDEXATION SURVIVAL RATE INTERGENERATIONAL TRANSFERS WELFARE HEALTH EQUILIBRIUM POLICY DISCUSSIONS EVOLUTION VARIABLES PUBLICATIONS WEALTH PENSION SURVIVAL SAVINGS POPULATION GROWTH FERTILITY RATES HETEROGENEITY INTEREST RATES PREFERENCES FERTILITY RATE LONGER LIVES OVERLAPPING GENERATIONS MODEL MORTALITY RATE SOCIAL SECURITY INHERITANCES PAY AS YOU GO UTILITY PENSION FUNDS MORTALITY PUBLIC PENSIONS ECONOMIC RESEARCH RESPECT PROGRESS CONSUMPTION OPPORTUNITY COST CAPITAL WAGES ANNUITIES WOMAN POLICY RESEARCH WORKING PAPER PENSIONS VALUE POPULATION GROWTH RATES EARLY DEATH PRODUCTION FUNCTIONS MACROECONOMICS SINGLE CHILD LONGEVITY RISKS UTILITY FUNCTION INCOME DISTRIBUTION CHANGES IN FERTILITY RETIREMENT SAVING PRIVATE PENSIONS POLICY PRODUCTION FUNCTION CHILDREN PER WOMAN FUNCTIONAL FORMS RETIREMENT SAVINGS TAXATION GOODS THEORY WARS ANNUITY WAR NUMBER OF CHILDREN LOWER FERTILITY UNCERTAINTY FUNDED PENSIONS POPULATION POLICY RESEARCH FERTILITY VARIANCE INHERITANCE RISK AVERSION LIFE SPANS PENSION PLANS HEALTHY LIFE PUBLIC PENSION MARGINAL UTILITY TERN ALTRUISM DEVELOPMENT POLICY PUBLIC GOODS Onder, Harun Pestieau, Pierre Inherited Wealth and Demographic Aging |
| relation |
Policy Research Working Paper;No. 7739 |
| description |
The role of inherited wealth in modern
economies has increasingly come under scrutiny. This study
presents one of the first attempts to shed light on how
demographic aging could shape this role. It shows that, in
the absence of retirement annuities, or for a given level of
annuitization, both increasing longevity and decreasing
fertility should reduce the inherited share of total wealth
in a given economy. Thus, aging is not likely to explain a
recent surge in this share in some advanced economies.
Shrinking retirement annuities, however, could offset and
potentially reverse these effects. The paper also shows that
aging could increase the size of individual bequests
vis-à-vis real wages. However, these bequests will be more
unequally distributed if aging is driven by a drop in
fertility. In comparison, the effect of increasing longevity
on their distribution in non-monotonic. |
| format |
Working Paper |
| author |
Onder, Harun Pestieau, Pierre |
| author_facet |
Onder, Harun Pestieau, Pierre |
| author_sort |
Onder, Harun |
| title |
Inherited Wealth and Demographic Aging |
| title_short |
Inherited Wealth and Demographic Aging |
| title_full |
Inherited Wealth and Demographic Aging |
| title_fullStr |
Inherited Wealth and Demographic Aging |
| title_full_unstemmed |
Inherited Wealth and Demographic Aging |
| title_sort |
inherited wealth and demographic aging |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/06/26543427/inherited-wealth-demographic-aging http://hdl.handle.net/10986/24656 |
| _version_ |
1764457300301447168 |