Bequest motives and household money demand

The bequest motive is an important motive determining intergenerational transfers of income, saving, and money. However, it has received little or no attention from past studies on money demand. This study utilizes panel data to show that the bequest motive is positively related to money demand and interacts with the life-cycle motive during various stages of an individual's life. Householders with bequest motives are more likely to transfer a greater proportion of their permanent incomes to monetary assets than those without bequest motives. © 2009 Springer Science+Business Media, LLC.