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Bequest Taxation, allocation of talents, education and efficiency

Author

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  • Stefano STAFFOLANI

    (Universita' Politecnica delle Marche, Dipartimento di Economia)

  • Enzo VALENTINI

    ([n.a.])

Abstract

In this paper we analyze intergenerational mobility on education. After a brief empirical analysis of the influence of family background on educational attainment, we present a dynamic model where the decisions concerning education may be financially constrained. Therefore, people who get higher educational levels are not necessarily the most talented. This "misallocation effect" causes a reduction in the efficiency of the economic system. We show that a proportional bequest taxation, whose yield is redistributed among all "youths", increases efficiency.

Suggested Citation

  • Stefano STAFFOLANI & Enzo VALENTINI, 2006. "Bequest Taxation, allocation of talents, education and efficiency," Working Papers 248, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    • Handle: RePEc:anc:wpaper:248
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    References listed on IDEAS

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    Cited by:

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    2. Ugo FRATESI, 2010. "The National and International Effects;of Regional Policy Choices: Agglomeration Economies, Peripherality and Territorial Characteristics," Working Papers 344, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
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    More about this item

    Keywords

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    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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