Pavoni, Nicola and Yazıcı, Hakkı (2017) Intergenerational disagreement and optimal taxation of parental transfers. Review of Economic Studies, 84 (3). pp. 1264-1305. ISSN 0034-6527 (Print) 1467-937X (Online)
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Official URL: http://dx.doi.org/10.1093/restud/rdw036
Abstract
We study optimal taxation of bequests and inter vivos transfers in a model where altruistic parents and their offspring disagree on intertemporal trade-offs. We show that the laissez-faire equilibrium is Pareto inefficient, and whenever offspring are impatient from their parents' perspective, optimal policy involves a positive tax on parental transfers. Cautioned by the technical complications present in this class of models, our normative prescriptions do not rely on the assumption of differentiability of the agents' policy functions.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Parental transfer taxation; Intergenerational disagreement; Altruism |
| Subjects: | H Social Sciences > HJ Public Finance |
| Divisions: | Faculty of Arts and Social Sciences > Academic programs > Economics Faculty of Arts and Social Sciences |
| Depositing User: | Hakkı Yazıcı |
| Date Deposited: | 10 Sep 2017 18:43 |
| Last Modified: | 10 Sep 2017 18:43 |
| URI: | https://research.sabanciuniv.edu/id/eprint/33786 |
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Intergenerational disagreements and optimal taxation of parental transfers. (deposited 02 Nov 2016 15:39)
- Intergenerational disagreement and optimal taxation of parental transfers. (deposited 10 Sep 2017 18:43) [Currently Displayed]
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