Work

Housing wealth, bequests, risk aversion, and the elderly

Year: 2025

Type: article

Abstract: Combining data on expectations of future bequests in the Health and Retirement Study with changes in housing wealth during the housing boom, we aim to estimate whether a plausibly exogenous wealth shock changes expected bequests. We find such wealth shocks lead to an increase in the expected likelihood of leaving a large bequest for households with lower baseline wealth, health, and risk aversion. In addition, households are more likely to engage in estate planning after the wealth shock.

Source: Economics Letters

DOI: 10.1016/j.econlet.2025.112343

Authors: Nadia Greenhalgh-Stanley, C․Lockwood Reynolds

Institution: Kent State University

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,030

Funders: Ohio State University, Oberlin College and Conservatory