Arbeitspapier
Pareto-improving bequest taxation
Altruistic parents may transfer resources to their offspring by providing education, and by leaving bequests. We show that in the presence of wage taxation, a small bequest tax may improve efficiency in an overlapping-generations framework with only intended bequests, by enhancing incentives of parents to invest in their children's education. This result holds even if the wage tax rate is held constant when introducing bequest taxation. We also calculate an optimal mix of wage and bequest taxes with alternative parameter combinations. In all cases, the optimal wage tax rate is clearly higher than the optimal bequest tax rate, but the latter is generally positive when the required government revenue in the economy is sufficiently high.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 2277
- Classification
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Wirtschaft
- Subject
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Erbschaftsteuer
Optimale Besteuerung
Bildungsinvestition
Privater Transfer
Lohnsteuer
Overlapping Generations
Pareto-Optimum
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Grossmann, Volker
Poutvaara, Panu
- Event
-
Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2006
- Handle
- Last update
-
27.12.42024, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Grossmann, Volker
- Poutvaara, Panu
- Institute for the Study of Labor (IZA)
Time of origin
- 2006
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