• International Journal of Human Ecology
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• v.5 no.1
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• pp.9-21
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• 2004

This study attempted to identify the factors related to life insurance focusing on two different types of life insurance： term life insurance and cash-value life insurance. Based on the human capital, bequest motives theories, and decision under risk, a conceptual framework was developed. The results showed a support for the conceptual framework indicating that human capital, bequest motives as well as attitude toward risk were important factors in predicting each of life insurance ownership. In addition, the factors related to each type of life insurance were different. For term life insurance, the variables representing households' bequest motives were found to play an important role while the variables reflecting human capital theory had significant impact on cash-value life insurance holding.

• Journal of Families and Better Life
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• v.23 no.3 s.75
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• pp.217-230
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• 2005

The purpose of this study was to examine factors related to the purchase of cash-value life insurance of households. Based on human capital and bequest motive theories of the demand for life insurance, this study developed a conceptual model of the demand for life insurance of households. In addition, in order to capture the beneficiaries' preference and expected lifetime utility, expected future financial needs were included in the conceptual model. Using Heckit analysis, the model was estimated by two stages. The results supported that human capital, bequest motives and expected future financial needs were significant factors on both decision to have insurance and the mont of insurance. Specifically, if the household's head expected to have a higher potential in the future, the household was more likely to have insurance. If a household had dependents, the household was more likely to have insurance. As income or monthly expenditure increased, the probability of haying insurance and the amount of the insurance increased However, savings or social insurance were positively related to the purchase of insurance.

• 한국노년학
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• v.31 no.4
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• pp.855-870
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• 2011

This paper investigates the effect of retirement-related subjective expectations on the capital accumulation of the Korean baby-boom generation. Using the 1st, 2nd waves of the KLoSA (2006, 2008), we estimate the distributional effects with quantile regression. In addition, the endogeneity of the expectation variables is handled using the fixed effect model. The quantile regression results reveal that the schooling, gender and the number of children are important determinants, but their effects are heterogenous across quantiles to a significant margin. The expectations of the stronger bequest motives and longer lifespan turned out to lead to more capital accumulation. The expectation regarding the expanded role of government retirement support seemed to crowd out private savings for the baby boomers with the total assets over 0.7 percentile.

• KDI Journal of Economic Policy
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• v.12 no.4
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• pp.97-111
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• 1990

This paper examines the effect of redistributive inheritance tax on income distribution and social welfare. The model used here is the Overlapping-Generations Model consisting of individuals with different bequest motives where the lifetime income distribution in each cohort is determined endogeneously by the dynamic bequest process. It is shown that the introduction of redistributive inheritance tax can improve the vertical equity in the sense that the increase in tax rate reduces the coefficient of variations of intra-cohort income distribution in steady-state. However, it is also shown that, the effect on social welfare, when measured by Benthamite SWF, is uncertain in general. The numerical simulations show that, in spite of its equity-enhancing effect, the tax increase can actually lower the steady-state social welfare within the plausible range of parametric values, through the long-run output effect as well as the deadweight welfare loss incurred by tax distortion. Hence, the problem of equity-efficiency trade-off can arise in this case. However, if both the market interest rate and the elasticity of marginal utility in individual's preference function are sufficiently high, it is shown to be possible that the steady-state social welfare is enhanced by the introduction of inheritance tax.