The Role of Intergenerational Transfers in Aggregate Capital Accumulation

  title={The Role of Intergenerational Transfers in Aggregate Capital Accumulation},
  author={Laurence J. Kotlikoff and Lawrence H.l Summers},
  journal={Journal of Political Economy},
  pages={706 - 732}
This paper uses historical U.S. data to directly estimate the contribution of intergenerational transfers to aggregate capital accumulation. The evidence presented indicates that intergenerational transfers account for the vast majority of aggregate U.S. capital formation; only a negligible fraction of actual capital accumulation can be traced to life-cycle or "hump" savings. A major difference between this study and previous investigations of this issue is the use of more accurate longitudinal… Expand
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