Optimal estate taxation: More (about) heterogeneity across dynasties

Arbeitspapier

Standard models on optimal estate taxation do not allow for intergenerational transmission of bequest motives. However, correlation in bequest motives may exist due to genetic and cultural transmission of preferences or indirect reciprocity. I introduce such intergenerational correlation to a simple model with heterogeneously altruistic parents. I derive two insights for optimal linear estate taxation under a Utilitarian welfare measure. First, this correlation implies a higher optimal estate tax rate. Second, estate tax rates should be higher for those parents who inherited themselves.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: BGPE Discussion Paper ; No. 217

Classification and Topics

• Classification: Wirtschaft ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Altruism; Philanthropy; Intergenerational Transfers
• Subject: estate taxation ; inheritance taxation ; indirect reciprocity ; intergenerational preference transmission

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Krug, Philipp
• Event: Veröffentlichung
• (who): Friedrich-Alexander-Universität Erlangen-Nürnberg
• (where): Erlangen und Nürnberg
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/272345
• Last update: 10.03.2025, 11:43 AM CET