Are Americans and Indians more altruistic than the Japanese and Chinese? Evidence from a new international survey of bequest plans

This paper discusses three alternative assumptions concerning household preferences (altruism, self-interest, and a desire for dynasty building) and shows that these assumptions have very different implications for bequest motives and bequest division. After reviewing some of the literature on actual bequests, bequest motives, and bequest division, the paper presents data on the strength of bequest motives, stated bequest motives, and bequest division plans from a new international survey conducted in China, India, Japan, and the United States. It finds striking inter-country differences in bequest plans, with the bequest plans of Americans and Indians appearing to be much more consistent with altruistic preferences than those of the Japanese and Chinese and the bequest plans of the Japanese and Chinese appearing to be much more consistent with selfish preferences than those of Americans and Indians. These findings have important implications for the efficacy and desirability of stimulative fiscal policies, public pensions, and inheritance taxes.     

Bequest motives and barriers to giving: The case of direct mail donors

Charitable bequests currently account for 9 percent of overall giving in the United States. In this study we examine the motives for this form of support and the potential barriers to giving perceived by members of bequest societies or legacy clubs solicited through direct mail. Through a series of eight focus groups we delineate the individual motives for offering a bequest, the organizational factors that drive gifts of this type, and the potential barriers that could prevent such a gift from being made. The implications for professional fundraising practice are explored.     

Inheritances and Bequest Planning: Evidence from the Survey of Consumer Finances

Using data from the Survey of Consumer Finances, this paper documented the positive correlation between the receipt of an inheritance and the expectation of leaving a bequest. Inheritance recipients were found to have a higher probability of planning to leave a bequest relative to households that had not received an inheritance. Conditional on having already received an inheritance, the likelihood of expecting to leave a bequest was even larger for households that anticipated to receive an inheritance in the future. The findings in this paper suggest that inheritances already received or expected to be received may be an important transmission mechanism underlying the bequest motive.     

CONSUMERS ARE NOT RICARDIAN: EVIDENCE FROM NINETEEN COUNTRIES

I develop a model which nests both Ricardian equivalence and an alternative non-Ricardian theory. The alternative is a stochastic variant of Blanchard's [1985] model, and its empirical implications are derived. I then test Ricardian equivalence against this alternative using data from nineteen countries. Ricardian equivalence is resoundingly rejected. Moreover, the estimated deviation from Ricardian equivalence is roughly what one would expect if households faced perfect insurance markets and did no have altruistic bequest motives. For many purposes, however, the estimated deviation from Ricardian equivalence has no practical import.     

PLANNED AND UNPLANNED BEQUESTS

We distinguish between bequests that are planned as part of a lifetime optimization process and those that are the unplanned result of errors in forecasting the date of death. Given the initial endowment we expect a positive relation between the bequest and the planning horizon, and a negative relation between unexpectedly long life and the bequest. A unique data set on wealthy decedents and their parents provides measures of expected horizons based on parents' longevity. Both predictions are confirmed, and there is an especially large and significant positive relation between the bequest and the length of the planning horizon.     

The Family Tribute in Charitable Bequest Giving

The propensity for charitable bequest giving is much lower than for current charitable giving. Some nonexperimental evidence suggests that this difference may be due to the relatively greater importance of family benefit considerations in charitable bequest giving than in current charitable giving. To test this concept experimentally, the effects of a family–charity conflict reduction message (that is, a reminder of family connections to a cause and an opportunity to make a tribute gift) are measured for both current and bequest giving. For those with family connections to a cause, the message generated increased interest in charitable bequest giving but not in current charitable giving. This result provides experimental support for previous suggestions regarding the special role of family considerations in charitable bequest giving. Managers may profitably consider the use of tribute messages to encourage bequest, but not necessarily current, charitable giving. Such messages were effective at increasing bequest intentions for all organization types and demographic groups tested, especially where the tribute was in honor of an ascendant such as a mother, grandmother, grandfather, or uncle.     

SWITCHING REGRESSION ESTIMATES OF THE INTERGENERATIONAL PERSISTENCE OF CONSUMPTION

The influential economic theory of intergenerational transfers predicts a negative connection between credit constraints and intergenerational mobility of consumption. Existing work has used bequest receipt to signal a parent's access to credit markets when investing in his children's human capital. However, measurement error in bequest receipt generates misclassification error and, in turn, attenuation bias. Employing switching regressions with imperfect sample separation to deal with this error, we show that the intergenerational persistence of consumption in the United States for credit constrained families is much higher than that for unconstrained families, contrary to what the theory implies. This means that children from constrained families are more likely to have consumption levels similar to those of their parents than children from unconstrained families. Our results are robust to the choice of bequest variables and other predictive variables in the switching equation. (JEL C13, D12, E21, J62)     

Does gambling type moderate the links between problem gambling,emotion regulation,anxiety, depression and gambling motives

The aim of this study is to assess the link between emotion regulation, depression, anxiety and gambling motives among a population of regular gamblers, distinguishing between strategic and chance game players. We recruited 287 regular gamblers online, including both problem (PG) and non-problem gamblers (NPG). All participants completed online questionnaires to screen for problem gambling (SOGS) and to assess emotion regulation (ERQ), anxiety and depression (HADS) and gambling motives (GMQ-F). In this sample, 33.4% of participants were PG. PG scored significantly higher than NPG on the GMQ-F (except for the social subscale) and HADS, but not in ERQ. Gamblers who played both strategic and chance games displayed more frequent and severe gambling problems and had higher depression and anxiety scores than those playing only strategic games. Overall, enhancement and financial motives and depression significantly predicted PG. Finally, the study found that gambling type moderates the relationship between problem gambling and expressive suppression, depression and gambling motives. The results show the intricate relationship between gambling motives and psychiatric symptoms (in particular, depression) in PG. Mixed and strategic gamblers share common motives, but coping, financial and enhancement were stronger among PG. Finally, they emphasize the differences between different types of gamblers.     

Tracing Protest Motives: The Link Between Newspaper Coverage,Movement Messages,and Demonstrators’ Reasons to Protest

Within the social movement literature, it is mostly assumed that the reasons why people join a protest demonstration are in line with the collective action frames of the organizations staging the protest. Some recent studies suggest, however, that protesters’ motives are only partly aligned with the messages that are broadcasted by social movements. This study argues that activists’ motives are for an important part shaped by mass media coverage on the protest issue. It investigates the link between people's reasons to protest, the campaign messages of the protest organizers, and newspaper coverage prior to the demonstration. Data cover 14 anti‐austerity demonstrations in Belgium, the Netherlands, and the United Kingdom. Results show that social movements depend a lot on other political actors to gain media visibility for their messages. Furthermore, the relationship between social movement frames and protest participant motives is mediated by newspaper coverage. Protest organizers’ are able to reach demonstrators via their own communication channels to some extent, but for many of their messages, they also rely on journalists’ reporting about the protest issue.     

Who Among the Elderly Owns Stocks? The Role of Cognitive Ability and Bequest Motive

Conventional advice is to reduce risky investments as one ages. Such a generalized focus on risk avoidance may be inappropriate for elderly with longer life spans and those with financial goals that extend beyond their lifetime. To better understand risky asset holdings among the elderly, we investigated the effect of cognitive ability and bequest motive on stock ownership and stock purchase. Using the 2004 wave of the Health and Retirement Study, we found that one-third of elderly households held stocks and 36% of those elderly stockowners had recently acquired stocks. The respondent??s cognitive ability and bequest motive were strongly related to stock ownership. Among those who owned stock, a bequest motive was positively related to a recent purchase of stocks.     

Bequest Expectations: Evidence from the 1989 Survey of Consumer Finances

This study uses the 1989 Survey of Consumer Finances to examine the effects of respondents' characteristics on their expectations of receiving inheritances and leaving bequests, based on altruistic bequest theory. The results of logistic regression analysis suggest that respondents' sociodemographic characteristics such as education, marital status, race, presence of living parents, and number of siblings significantly affect their anticipation of receiving an inheritance. People's expectations of leaving a bequest are found to be positively and significantly related to the value of nonliquid asset holdings, education, marital status, and positive attitude toward bequests but inversely associated with the total number of children in the household and being disabled. Those who are self-employed and middle-aged are more likely to anticipate leaving bequests.     

The Practice of Puxa-Puxa among Mozambican Women: A Systematic Inventory of Motives

Puxa-puxa is the elongation of the labia minora of the genital organs. It is one of the most widespread genital practices among women in Mozambique, and the practice seems to be specific to this country. The motives underlying this practice and its abandonment were examined in a theory-driven way. A total of 616 women currently living in the provinces of Maputo, Zambezia, and Nampula, aged 18 to 62, were presented with one of two questionnaires that contained items about possible motives for practicing puxa-puxa or possible motives for not practicing it. Seven separable motives for practicing puxa-puxa were found, and the most highly rated were “Having a satisfying sexual life”; “Satisfying my sexual partner”; and “Gaining self-control.” Five separable motives for not practicing puxa-puxa were found, and the most highly rated were “Disliking a painful practice”; “Affirming one's value as a person”; and “Avoiding contamination.” The main findings of the study are that the practice of puxa-puxa is associated with deep psychological motives common to most women in most cultures, namely having a satisfying sexual life with a reliable partner, creating the conditions for having children, and being able to care for them. The abandonment of this practice is largely the result of personal decisions, which are not taken under constraint and which are not exclusively taken from fear of illness.     

Exploring the Interaction Between Volunteering Status,Paid Job Characteristics and Quality of Volunteers’ Motivation on Mental Health

The literature on the health-promoting effects of community work has primarily dealt with the population in retirement age, yet the vast majority of volunteers are people still in the workforce. The aim of this study is to observe the relationship between volunteering and health within the context of working life, considering paid work conditions and motives to volunteer as moderating variables. We conducted an online survey with a sample of Swiss workers employed in different industries. Results show that volunteers with self-determined motives (but not with controlled motives) report lower levels of stress and burnout than non-volunteers. Moreover, volunteers in general (regardless of the quality of motivation) report higher levels of work engagement and well-being. Analyses further reveal an interaction effect for burnout and stress, where the difference between self-determined volunteers and non-volunteers becomes larger with unfavorable working conditions at their paid job, hinting at potential compensatory effects. Implications for future research and the voluntary sector are discussed.     

Behavioral economic phenomena in decision-making for others

We examine whether biases identified in the behavioral-economics literature apply in decision-making for others (DMfO). We conduct a laboratory experiment in which subjects make decisions on behalf of themselves and others in eighteen tasks that measure the following biases: present-bias in time preferences, reflection effect in risk preferences, compound risk aversion, decoy effect, anchoring bias, endowment effect, and identifiable-victim bias. In our experiment, DMfO is DMfO simpliciter: unincentivized decisions made by one individual on behalf of another–the individual making decisions faces no direct costs or benefits when engaging in DMfO (as she would in a principal-agent framework or with bequest motives), and DMfO is not framed as giving advice or guessing others’ behavior. Although we find that DMfO is by and large statistically indistinguishable from decisions for oneself, we identify the following self-other discrepancies: (i) willingness to pay (i.e., bids to procure goods and donations to charity) is higher in DMfO than in decisions for oneself in tasks associated with the anchoring bias, end owment effect, and identifiable-victim bias; and (ii) the propensity to give uninterpretable responses is higher in DMfO than in decisions for oneself. We also find order effects, with DMfO more similar to decisions for oneself when DMfO follows decision making for oneself. Lastly, in response to open-ended items soliciting self-reports of subjects’ approach to DMfO, most subjects report having followed some version of the “Golden Rule” (e.g., deciding for others as they would for themselves) or having tried to maximize the other subject’s payment or utility; very few subjects report motivations that can be construed as rivalrous.     

Sources of Volunteer Motivation: Transformational Leadership and Personal Motives Influence Volunteer Outcomes

We examined the separate influences of volunteers' personal motives and their team leaders' behaviors on volunteer satisfaction and contributions, along with mediating processes suggested by self‐determination theory. Participants were 302 volunteers who worked in teams at various sites through a central agency. As predicted, both personal motives for volunteering and transformational leadership influenced volunteer satisfaction through enhanced work meaningfulness and higher‐quality team relationships. However, motives that predicted volunteer contribution were different from those that predicted satisfaction. Whereas satisfaction was positively associated with motives concerning esteem enhancement and value expression, contribution was positively associated with motives to gain understanding and negatively related to motives pertaining to esteem enhancement and social concerns. Transformational leadership was positively associated with volunteer satisfaction, but not with volunteer contributions. The theoretical ramifications of these findings are discussed, along with practical implications for the recruitment and retention of volunteers.     

1979–1982: RULES OR DISCRETION IN MONETARY POLICY?

What determined MI growth from November 1979 through October 1982? A reaction function is developed and tested which ascribes the level of M1 to two Fed motives. One is the Fed's desire to hit its money growth targets, the other is to carry out a counter-cyclical short-run monetary policy. Both motives are found to be significant during the period. This evidence is consistent with the contention of some economists that the period was not a valid test of monetarist policy rules.     

Drinking motives, alcohol expectancies, self-efficacy, and drinking patterns

The current study focused on the associations between drinking motives, alcohol expectancies, self-efficacy, and drinking behavior in a representative sample of 553 Dutch adolescents and adults. Data were gathered by means of self-report questionnaires and a 14-days drinking diary. A model was postulated in which negative expectancies and self-efficacy were directly associated with drinking, and in which drinking motives mediated the associations between positive expectancies, and drinking. The findings of multivariate analyses showed that drinking motives were related to general indicators of drinking and to drinking levels in specific situations. Furthermore, self-efficacy was moderately related to all drinking variables. Negative expectancies were related to general drinking variables but hardly to drinking in specific situations. Positive expectancies were hardly related to drinking in multivariate analyses and therefore mediation models could not be tested. No systematic moderator effects were apparent for age and gender on the associations between drinking motives, alcohol expectancies, self-efficacy, and drinking.     

Sexual compliance: gender,motivational, and relationship perspectives

This paper provides a systematic review of research on sexual compliance in heterosexual relationships. Three perspectives shed light on which individuals are the most likely to comply with a sexually interested partner's desire for sex and why. A gender perspective highlights the common male-female asymmetry in compliant sexual behavior and identifies factors that contribute to women's greater likelihood of being the sexually compliant partner. A motivational perspective distinguishes between approach and avoidance motives for compliance and considers the possible consequences of these motives for emotional reactions, sexual risk taking, and sexual violence. A relationship maintenance perspective views sexual compliance as illustrative of broader patterns of sacrifice in committed relationships. Each perspective suggests important new directions for empirical research.     

Attitudes towards inheritance taxation – results from a survey experiment

Inheritance taxation divides public opinion and is among the most unpopular taxes in many countries, although only a minority of people have to pay it. Using a survey experiment with vignettes on a sample of German citizens (N = 479), we examine attitudes towards inheritance taxation. Our results reveal several relevant dimensions for a proposed fair inheritance tax rate (PITR): The PITR decreases with a close relationship between testator and heir and when the asset is a family-occupied house or family enterprise compared with a “lump sum”. It increases with the value of bequest and income of the heir representing equity considerations. Respondents advocate higher tax rates to reduce fiscal budget deficits. Respondents with a strong family orientation propose a low inheritance tax rate.     

Bequests and family traditions: the case of nineteenth century France

Like father, like son: is the bequest behavior of children “inherited” from that of their parents? Most economic models (altruistic, paternalistic or exchange models) postulate that bequest behavior does not depend per se on parents’ behavior. Yet because of data limitations, few empirical studies have analyzed the link between bequests left and inheritances received. In this paper, we evaluate the effect of inheritance relative to lifetime income on the amount that individuals bequeath, in the case of France. This study uses original historical data including wealth genealogies covering the nineteenth and first half of the twentieth centuries for the Loire Inférieure département. Empirical evidence suggests that the propensity to bequeath is much greater for inheritance than for human resources: a deceased having inherited twice the average wealth leaves 35–60 % more to his own heirs that the average for his generation. In nineteenth century France, bequests are explained more by inheritance received than by personal savings per se.