No. 1032 - The wealth yet to come: inheritance expectations and households' economic decisions
The paper analyses the extent to which the expectation of receiving an inheritance influences the main economic decisions of Italian households, with particular reference to consumption, saving rates, labour supply, indebtedness and portfolio composition. To this end, it uses data from the 2014 wave of Banca d'Italia Survey on Household Income and Wealth, which included several questions on received and expected inheritances.
Households expecting to receive an inheritance exhibit higher consumption, a lower propensity to save and a lower willingness to work than other households. These effects become stronger as the age of the household's main income earner increases. The expectation of receiving a bequest is also associated with a higher probability of borrowing for consumption purposes and with a larger share of wealth invested in financial assets.
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