The Analysis of Household Behavior towards Bequest The Case of Sistan and Baluchstan (Panel Data 2001-2006)

Transfer of inheritance and accumulated savings to future generations as a factor affecting the income inequalities for the next generations and as a key variable in government expenses allocated to socio-economic services and social security has always been a controversial subject for research. In this study, using a panel data, in a structure based on traditional culture in Sistan and Baluchestan province, it is tried to determine how the households make decisions on inheritance and which social, economic and demographic factors have greater impact on such decisions in a dual urban life. For this purpose, firstly, the Altonji and Villanueva model or the "income-wealth derivative" was considered as a base framework. Then, with regard to the charitable behavior of the province households, some variables are set for the model. After that, the Data Panel for the years 2001-2006 with nearly 1600 tax cases are analyzed which are prepared through inheritance tax cases and personal visits. Then using the statistical software of STATA 9.1, data were analyzed. To determine the fixed and random effect, the Hausman test was also used. Finally, the results related to the scheme hypothesis are reviewed. Findings indicate a difference in behavior and some form of harmony respect to dual structures of each society. It means that, with improving the economic wellbeing in Zahedan city, inheritance increases, but in case of low-income societies, inheritance will decrease. In other words, Wagner theory, arguing per capita income growth from the perspective of citizens’ behavior within different structures and changes in income elasticity of goods for the households in terms of effects on the inheritance transfer model can be easily seen in different behavioral coefficients.