Intergenerational links, taxation, and wealth distribution
AbstractWe extend one of the main findings in Bossmann et al. (2007)("Bequests, taxation and the distribution of wealth in a general equilibrium model," Journal of Public Economics, 91, 1247-1271). Bequest motives per se reduce wealth inequality. We show that the result holds for a stronger criterion of inequality comparison between distributions. Bossmann et al. (2007) use the coefficient of varation as the inequality measure. Our Lorenz dominance result implies their result. We also strengthen two other conclusions in Bossmann et al. (2007). Earnings ability inheritance could increase wealth inequality and estate taxes could decrease wealth inequality.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 39511.
Date of creation: 18 Jun 2012
Date of revision:
Wealth inequality; Bequest motives; Inheritance of earings ability; Estate taxes; Lorenz dominance;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
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