(UM10-16) - Bequest Motives and Asset Decumulation at the End of Life
John Bailey Jones, Mariacristina De Nardi and Eric French
The proposed research would examine how out-of-pocket medical expenses and bequest motives affect the saving of elderly singles. It will use data from the Assets and Health Dynamics of the Oldest Old (AHEAD) dataset to estimate a dynamic programming model of saving that accounts for uncertain medical expenses, mortality risk, social insurance, and bequest motives. The model would be used to evaluate potential policy reforms, such as changing Social Security benefits or abolishing estate taxes.