Do bequest motives offset self-control problems in savings and wealth accumulation choices?

The purpose of this dissertation is to study the behavior of dynamically inconsistent individuals and the implications of this characteristic on their savings choices. First, I propose a theoretical model with certainty. Then, I insert uncertainty with respect to the length of life. At the same time, I try to enrich the model by adding the possibility for individuals to have a bequest motive. My purpose is studying theoretically if the desire to leave a legacy has implications on consumption and savings choices. The model yields some testable implications which are investigated using household data from the SHIW. I find that dynamically inconsistent individuals have lower savings under a ceteris paribus condition. This is consistent with the hypotheses emerging from the model and in line with the existing literature. The bequest motive is found to have non significant effects on counteracting the self-control problem. Moreover, some evidence of precommitment strategies emerges from the empirical analysis, suggesting a degree of awareness of the self-control problem by italian dynamically inconsistent households.