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To give or not to give: bequest estimate and wealth impact based on a CGE model with realistic demography in Japan

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  • Miguel Sánchez Romero

    (Max Planck Institute for Demographic Research, Rostock, Germany)

  • Naohiro Ogawa
  • Rikiya Matsukura

Abstract

In Japan due to the rapid population aging and its large financial pressure on pay-as-you-go retirement systems, the economic impact of bequest wealth has been drawing a tremendous amount of attention. Despite that, there are neither official statistics on bequest for the whole population, nor analyses of the historical evolution of bequest. Our study fills this gap by offering an estimate of bequest in Japan from 1850 to 2100, based on a computable general equilibrium model with realistic demography. Our model shows that the historical evolution of the bequest-to-output ratio in Japan follows the same U-shaped pattern described by Piketty (2011) for France. Moreover, we estimate that the annual flow of bequest represented between 4% and 6% of the output in the year 2000 and that it will reach between 7% and 13% of the output by year 2100.

Suggested Citation

  • Miguel Sánchez Romero & Naohiro Ogawa & Rikiya Matsukura, 2013. "To give or not to give: bequest estimate and wealth impact based on a CGE model with realistic demography in Japan," MPIDR Working Papers WP-2013-012, Max Planck Institute for Demographic Research, Rostock, Germany.
    • Handle: RePEc:dem:wpaper:wp-2013-012
    DOI: 10.4054/MPIDR-WP-2013-012
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    Cited by:

    1. D’albis, Hippolyte & Moosa, Dalal, 2015. "Generational Economics And The National Transfer Accounts," Journal of Demographic Economics, Cambridge University Press, vol. 81(4), pages 409-441, December.
    2. Gahramanov Emin & Gaibulloev Khusrav & Younas Javed, 2019. "Parental Transfers, Intra-household Bargaining and Fertility Decision," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(1), pages 1-17, January.
    3. Emilio Zagheni & Brittney Wagner, 2015. "The impact of demographic change on intergenerational transfers via bequests," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 33(18), pages 525-534.
    4. Gahramanov, Emin & Gaibulloev, Khusrav & Younas, Javed, 2017. "Parental Transfers and Fertility: Does the Recipient's Gender Matter?," MPRA Paper 79531, University Library of Munich, Germany.
    5. Ono, Taiki, 2024. "Bequests and wealth inequality in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 72(C).

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    More about this item

    Keywords

    Japan; economic demography; inheritance; mortality;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Z0 - Other Special Topics - - General

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