Generational wealth influences societal norms and economic growth dynamics.
The article explores how parents passing down their preferences to their children affects the amount of money people leave behind when they die. The researchers found that in a society where preferences are inherited, people may leave more or less money to their heirs compared to a society where preferences are not passed down. The best way to distribute resources in this scenario involves having a certain amount of savings that is higher than in a society without inherited preferences. However, even when people leave money to their children, the way resources are distributed over time is not ideal.