A Dynamic Model of Redistribution, Inheritance, and Inequality

James Davies and Peter Kuhn

Canadian Journal of Economics, 1991, vol. 24, issue 2, 324-44

Abstract: Comparing steady states of an overlapping-generations economy, Gary S. Becker and Nigel Tomes (1979) and James B. Davies (1986) have noted that redistributive taxation can be disequalizing. This paper solves for the full transition path of inequality after a redistributive tax increase. The authors find, in contrast to the steady-state results, that redistribution "works' in the first generation under quite general conditions, even when fully anticipated by all previous generations. Further, inequality is likely to fall for several generations before approaching its new steady-state level from below.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://links.jstor.org/sici?sici=0008-4085%2819910 ... DMORI%3E2.0.CO%3B2-U (text/html)
only available to JSTOR subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:24:y:1991:i:2:p:324-44

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php
office@economics.ca

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler (werner.antweiler@ubc.ca).