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The Probability of Receiving an Equal Bequest

Helgesson, Anna LU (2018) NEKN01 20181
Department of Economics
Abstract
Economists have for a long time tried to explain the motivations behind bequests, why they exist and how they are divided. In Sweden, most bequests are equally divided, which raises the question of what motivates this decision even if there is a will written. This study aims to empirically examine if the Swedish decedents divide their bequests to make up for economic differences among their heirs. Using a linear probability model, I attempt to determine if the probability to divide a bequest equally is affected by the difference in siblings’ lifetime labor income, lifetime individual wealth, and lifetime household wealth. I find that economic differences may explain the probability of equal division of bequest when the estate is divided... (More)
Economists have for a long time tried to explain the motivations behind bequests, why they exist and how they are divided. In Sweden, most bequests are equally divided, which raises the question of what motivates this decision even if there is a will written. This study aims to empirically examine if the Swedish decedents divide their bequests to make up for economic differences among their heirs. Using a linear probability model, I attempt to determine if the probability to divide a bequest equally is affected by the difference in siblings’ lifetime labor income, lifetime individual wealth, and lifetime household wealth. I find that economic differences may explain the probability of equal division of bequest when the estate is divided between two siblings. For three or four siblings, the economic differences may not explain the probability of equal bequest; instead, the probability is better explained by the age of the heir and the decedent. (Less)
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author
Helgesson, Anna LU
supervisor
organization
course
NEKN01 20181
year
type
H1 - Master's Degree (One Year)
subject
keywords
equal bequest, linear probability model, altruistic theory, economic differences
language
English
id
8948394
date added to LUP
2018-07-03 14:20:50
date last changed
2018-07-03 14:20:50
@misc{8948394,
  abstract     = {Economists have for a long time tried to explain the motivations behind bequests, why they exist and how they are divided. In Sweden, most bequests are equally divided, which raises the question of what motivates this decision even if there is a will written. This study aims to empirically examine if the Swedish decedents divide their bequests to make up for economic differences among their heirs. Using a linear probability model, I attempt to determine if the probability to divide a bequest equally is affected by the difference in siblings’ lifetime labor income, lifetime individual wealth, and lifetime household wealth. I find that economic differences may explain the probability of equal division of bequest when the estate is divided between two siblings. For three or four siblings, the economic differences may not explain the probability of equal bequest; instead, the probability is better explained by the age of the heir and the decedent.},
  author       = {Helgesson, Anna},
  keyword      = {equal bequest,linear probability model,altruistic theory,economic differences},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Probability of Receiving an Equal Bequest},
  year         = {2018},
}