Utility from accumulation

Description

"Abstract: The possibility that individuals may derive utility from the mere fact of holding wealth has long been recognized. A simple intertemporal model featuring utility from accumulation is used here to examine consumption and savings, the choice between inter vivos gifts and bequests (both to descendants and to charities), and levels of annuitization. Introducing utility from accumulation helps to explain a number of empirical regularities that otherwise seem inconsistent with optimizing behavior. Moreover, because individuals who derive significant utility from accumulation will tend to save more and, in the long run, give more than others do, this source of utility may be especially important in analyzing savings behavior, gifts and bequests, and charitable contributions"--John M. Olin Center for Law, Economics, and Business web site.

Subjects

Series Statement

• Discussion paper -- no. 654
• Discussion paper (John M. Olin Center for Law, Economics, and Business : Online) -- no. 654.

Links

• URL

Other Editions

• Utility from accumulationElectronic resourceNational Bureau of Economic Research2009-01-01
• Utility from accumulationElectronic resourceHarvard Law School2009