EconPapers    
Economics at your fingertips  
 

Fiscal policy, composition of intergenerational transfers, and income distribution

Jaime Alonso-Carrera (), Jordi Caballe () and Xavier Raurich ()

Journal of Economic Behavior & Organization, 2012, vol. 84, issue 1, 62-84

Abstract: In this paper, we characterize the relationship between the initial distribution of human capital and physical inheritances among individuals and the long-run distribution of these two variables. In a model with indivisible investment in education, we analyze how the initial distribution of income determines the posterior intergenerational mobility in human capital and the evolution of intragenerational income inequality. This analysis enables us in turn to characterize the effects of fiscal policy on future income distribution and mobility when the composition of intergenerational transfers is endogenous. To this end, we consider the following government interventions: a pay-as-you-go social security system, a tax on inheritance, a tax on capital income, a tax on labor income, and a subsidy on education investment.

Keywords: Altruism; Intergenerational transfers; Human capital; Income distribution (search for similar items in EconPapers)
JEL-codes: D64 E13 E21 E62 I24 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268112001515
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Fiscal policy, composition of intergenerational transfers, and income distribution (2010) Downloads
Working Paper: Fiscal policy, composition of intergenerational transfers, and income distribution (2009) Downloads
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:eee:jeborg:v:84:y:2012:i:1:p:62-84

DOI: 10.1016/j.jebo.2012.07.013

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-11-09
Handle: RePEc:eee:jeborg:v:84:y:2012:i:1:p:62-84