Intergenerational transfers, wealth accumulation and inequality

In both the U.S. and the U.K., inequality has been rising among households in successive cohorts, and younger households seem to be accumulating less wealth for retirement than their parents did. This project aims to investigate the role that intergenerational transfers are playing in driving these trends. Using data from the U.S. and U.K., we will deepen our understanding of the effects of intergenerational transfers by building a life cycle model in which households choose consumption, saving, and bequest behavior in the face of three sources of uncertainty: future labor income, future receipt of intergenerational transfers, and mortality.