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Do Transfer Taxes Reduce Intergenerational Transfers?


  • Tullio Jappelli
  • Mario Padula
  • Giovanni Pica


We estimate the effect of taxes on intergenerational transfers by exploiting a sequence of Italian reforms culminating with the abolishment of transfer taxes. We use the Surveys of Household Income and Wealth from 1993 to 2006, which have data on real estate transfers, and information on potential donors and recipients. Difference-in-differences estimates indicate that the abolition of transfer taxes increases the probability of high-wealth donors making a transfer by two percentage points and increases the area transferred by 9.3 square meters relative to poorer donors.

Suggested Citation

  • Tullio Jappelli & Mario Padula & Giovanni Pica, 2014. "Do Transfer Taxes Reduce Intergenerational Transfers?," Journal of the European Economic Association, European Economic Association, vol. 12(1), pages 248-275, February.
  • Handle: RePEc:bla:jeurec:v:12:y:2014:i:1:p:248-275

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    References listed on IDEAS

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    Cited by:

    1. Emanuele Ciani & Claudio Deiana, 2016. "No Free Lunch, Buddy: Housing Transfers and Informal Care Later in Life," Center for the Analysis of Public Policies (CAPP) 0134, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    2. Edoardo, Di Porto & Ohlsson, Henry, 2016. "Avoiding Taxes By Transfers Within The Family," Working Paper Series 2016:4, Uppsala University, Department of Economics.
    3. repec:cmn:journl:y:2017:i:4:p:191-206 is not listed on IDEAS
    4. Marianna Brunetti & Costanza Torricelli, 2012. "Second Homes: Households' Life Dream or (Wrong) Investment?," CEIS Research Paper 351, Tor Vergata University, CEIS, revised 04 Aug 2012.
    5. Glogowsky, Ulrich, 2016. "Behavioral Responses to Wealth Transfer Taxation: Bunching Evidence from Germany," Annual Conference 2016 (Augsburg): Demographic Change 145922, Verein für Socialpolitik / German Economic Association.
    6. Emanuele Ciani & Claudio Deiana, 2017. "No free lunch, Buddy: past housing transfers and informal care later in life," Temi di discussione (Economic working papers) 1117, Bank of Italy, Economic Research and International Relations Area.
    7. Bellettini, Giorgio & Taddei, Filippo & Zanella, Giulio, 2017. "Intergenerational altruism and house prices: Evidence from bequest tax reforms in Italy," European Economic Review, Elsevier, vol. 92(C), pages 1-12.
    8. Christophe Courbage & Peter Zweifel, 2015. "Double Crowding-Out Effects of Means-Tested Public Provision for Long-Term Care," Risks, MDPI, Open Access Journal, vol. 3(1), pages 1-16, February.

    More about this item

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth


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