Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/333682 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 18243
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Understanding how household decisions react to economic shocks is important for effective policy design. Using detailed individual consumption data, we investigate how household consumption responds to unexpected inheritance realizations within an inter-temporal collective framework. Inheritances constitute personal assets that are not equally divided upon divorce among spouses according to matrimonial property laws, and they play the role of stochastic distribution factors affecting intra-household bargaining dynamics. Estimating a dynamic collective model, the analysis provides evidence consistent with dynamic bargaining effects. In particular, heirs immediately increase their consumption growth, while their partners experience a decline in their consumption. These findings are not driven by liquidity- or credit-constrained households, which could otherwise lead households to overreact to inheritance receipts.
Subjects: 
inheritances
consumption
commitment
dynamic collective model
JEL: 
D12
D13
D15
D31
E21
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.