New study reveals how inheritance impacts economy and social security
The article explores how people's decisions to leave inheritances can affect the economy. By considering how parents and children interact in this process, the researchers found that inheritance patterns can change over time. They discovered that including these interactions in economic models can explain why inheritance levels compared to the economy can increase or follow a U-shaped pattern. Additionally, the study suggests that the size of social security programs can impact long-term economic growth in a non-linear way. This new perspective helps explain why previous research on social security and savings has been inconclusive.