Template-Type: ReDIF-Paper 1.0



Author-Name: Philipp Krug
Author-X-Name-First: Philipp 
Author-X-Name-Last: Krug

Title: Optimal Estate Taxation: More (about) Heterogeneity across Dynasties


	
Abstract: Standard models on optimal estate taxation do not allow for intergenerational transmission
of bequest motives. However, correlation in bequest motives may exist due to
genetic and cultural transmission of preferences or indirect reciprocity. I introduce such
intergenerational correlation to a simple model with heterogeneously altruistic parents.
I derive two insights for optimal linear estate taxation under a Utilitarian welfare measure.
First, this correlation implies a higher optimal estate tax rate. Second, estate tax
rates should be higher for those parents who inherited themselves.

Length: 29 pages
Creation-Date:  2022-05
File-URL: http://www.bgpe.de/texte/DP/217_Krug.pdf
File-Format: Application/pdf
File-Function: First version, 2022
Number: 217
Classification-JEL: H21, H24, D64

Keywords: estate taxation, inheritance taxation, indirect reciprocity, intergenerational
preference transmission

Handle: RePEc:bav:wpaper:217_Krug