Expected Bequests and Their Distribution

Based on a sample of actual bequests that is population-representative and on the subjective probability of bequests, we estimate the distribution of bequests that the older population will make. We find that the distribution is highly skewed, so that the typical baby-boom person will receive a very modest inheritance. This is partly due to the skewed distribution of wealth and partly due to the tendency of the wealthy to have fewer children. But it is also due to anticipated dissaving: we estimate that households in the age band 70-74 will bequeath just 39% of their wealth, consuming the rest before they die.

Anticipated and Actual Bequests

This paper uses data on anticipated bequests from two waves of the Health and Retirement Study and the Asset and Health Dynamics of the Oldest Old (AHEAD), and on actual bequests from AHEAD. Actual bequests were measured in exit interviews given by proxy respondents for 774 AHEAD respondents who died between waves 1 and 2. Because the exit interview is representative of the elderly population, the distribution of estate values is quite different from that obtained from estate records, which represent just a wealthy subset of the population. Anticipated bequests were measured by the subjective probability of leaving bequests. Between waves 1 and 2, increases in bequest probabilities were associated with increases in the subjective probability of surviving, increments in household wealth, and widowing while out-of-pocket medical expenses reduced the likelihood of a bequest. By comparing bequest probabilities with baseline wealth we were able to test a main prediction of the life-cycle model, that individuals will dissave at advanced old-age. The AHEAD respondents anticipate substantial dissaving before they die.

Enhancing the Quality of Data on Income: Recent Developments in Survey Methodology

In this paper, we evaluate two survey innovations aimed at improving income measurement. These innovations are (1) integrating the question sequences for income and wealth which may elicit more accurate estimates of income from capital than has been true in the past, and (2) changes in the periodicity over which income flows are measured, which may provide a closer match between what the survey respondent knows best and the periodicity contained in survey measurement. These innovations have been introduced into both the Health and Retirement Study (HRS) and the study of Asset and Health Dynamics Among the Oldest Old (AHEAD). Based on the results reported in this paper, the potential return in quality of income measurement from these innovations is substantial.

Hi-tech cheating: a study of student attitudes on academic dishonesty involving the use of information technology

Despite the fact that research into cheating has continued for several decades, cheating in higher education appears to be widespread and endemic. This may be particularly troublesome for business school students, who, according to some research, appear to cheat more than students in other curriculums. Technology is giving students new opportunities to cheat. Companies are developing products specifically designed to help students cheat. Although there are some resources and tools to help faculty monitor things such as plagiarism, technology is providing a continuous stream of new opportunities for students to cheat, oftentimes without a high likelihood of being caught. Beliefs and norms are one indicator for why students cheat. Understanding how students perceive cheating using technology versus cheating using traditional means may provide valuable insights and may form the basis for additional research. This study tested the hypothesis that students tend to view cheating via technology with more leniency than cheating with traditional means. It did this by examining the results of survey data that asked 148 students to rate the acceptability of behavior in a series of scenarios that included a version using information technology and one using more traditional means. The results of the survey were mixed, leading to the conclusion that the general hypothesis is not supported and that researchers should look into other factors for the reasons behind cheating with information technology

The Effects of Subjective Survival on Retirement and Social Security Claiming

This research examines the relationship between mortality risk and retirement, and mortality risk and the propensity to take early and reduced Social Security benefits. The main theory for understanding saving behavior is the life-cycle model (LCH). The LCH, however, can be extended to find the optimal retirement age, and can be used to make predictions about the desire to annuitize or equivalently, the desire to delay claiming Social Security benefits. According to the LCH, individuals who expect to be exceptionally long-lived will retire at a later age than individuals who expect to die early because they will need greater wealth to finance more years of retirement. According to almost any model of intertemporal maximization, those who expect to be long lived will see the increase in Social Security benefits that result from retiring at 65 rather than at 62 as being financially advantageous and will, therefore, delay application for benefits until the age of 65. In principle the decision to retire and the decision to take early and reduced benefits are related decisions but not necessarily the same decision. Therefore this study examines both decisions.