Household Behavior Model

Under different household behavior models, individuals will have divergent motive for leaving inheritance. Horioka et al. (2000) and Horioka (2002, 2014) summarize three household behavior models, which are the life cycle model, the altruism model and the dynasty model. In the life cycle model, also called self-interest model, individuals usually have no plan to leave an inheritance or use bequest to exchange financial assistance or nursing care provided by their children during the old age. In other words, bequeathing money to children is just a kind of payment for service. In the altruism model and dynasty building model, individuals will have a positive bequest leaving motive towards their children. Additionally, in the dynasty model, individuals

For those who leave an inheritance no matter what are regarded as an unconditional altruistic bequest motive, and those who choose “I do not plan to leave an inheritance to my child(ren) under any circumstances because doing so may reduce their will to work” could be regarded as altruistic bequest motive as well, because this is a kind of tough love for their children. Those who leave an inheritance to exchange for nursing care and financial assistance are considered as conditional bequest motive. Along with those who have no bequest motive because they want to use up their own wealth and those who are going to leave whatever is left over, those conditional bequest motives are treated as self-interested household behavior. Those who are going to leave an inheritance to the child(ren) who will carry on the family business are consistent with dynasty building bequest motive. For those who have positive will to leave an inheritance but have no capacity to do so are not classified in the household behavior

2012 datasets. The average ages for those who have at least one child are 55.4 and 58.8 years old in Japan and the U.S., respectively. The average ages for females who have at least one child are 54.6 and 58.9 years old, for males are 56.5 and 58.7 years old. The average ages for those who are childless are 43.2 (Japan) and 45.0 years old (the U.S.). The average number of children for those who have at least one child are 2.17 for Japan and 2.59 for the U.S. The life expectancies at the age of 55 are 33.63 and 28.02 years for Japanese females and males, respectively. The life expectancies at the age of 58 are 27.1 and 23.2 years for American females and males of all races and