Progressive estate taxation
By: Emmanuel Farhi [and] Ivǹ Werning
Contributors: Werning, Ivǹ; Massachusetts Institute of Technology. Dept. of Economics
Series: Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 06-27; Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 06-27.
Publisher: Massachusetts Institute of Technology, Dept. of Economics
Published: 2006
Place of publication: Cambridge, MA
Language: eng
Number of pages: 38
Description: For an economy with altruistic parents facing productivity shocks, the optimal estate taxation is progressive: fortunate parents should face lower net returns on their inheritances. This progressivity reflects optimal mean reversion in consumption, which ensures that a long-run steady state exists with bounded inequality-avoiding immiseration. Keywords: progressivity, inheritance, estate taxation. JEL Classifications: E6.
Notes: "September 25, 2006."

Includes bibliographical references (p. 38).

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