Population growth and taxes: the effect of regional differences in the Spanish inheritance tax

Rafael González-Val and Miriam Marcén ()
Additional contact information
Miriam Marcén: Universidad de Zaragoza

The Annals of Regional Science, 2024, vol. 73, issue 1, No 6, 135-163

Abstract: Abstract This paper assesses the impact of inheritance tax on population growth exploiting the quasi-random differences in the inheritance tax across different Spanish regions over the last 20 years. Using a dynamic difference-in-differences approach to municipality population data, we found a robust-positive short-term effect (1–4 years) on the population growth for small inheritances. The impact is sizable and represents roughly 6% of the standard deviation, but this dissipates after 7 years. The heterogeneity analysis by age group reveals a clear positive and lasting response to the inheritance tax benefits for those aged 50–69 years. This is especially seen in municipalities close to the border pointing to migration costs as a key factor in changes of residence in response to the inheritance tax law differences.

JEL-codes: H3 J6 K34 R23 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00168-023-01253-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:anresc:v:73:y:2024:i:1:d:10.1007_s00168-023-01253-y

Ordering information: This journal article can be ordered from
http://link.springer.com/journal/168

DOI: 10.1007/s00168-023-01253-y

Access Statistics for this article

The Annals of Regional Science is currently edited by Martin Andersson, E. Kim and Janet E. Kohlhase

More articles in The Annals of Regional Science from Springer, Western Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().