Bequests, estate taxes, and wealth distributions

Jing Wan and Shenghao Zhu ()
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Jing Wan: Tianjin University
Shenghao Zhu: Beihang University

Economic Theory, 2019, vol. 67, issue 1, No 6, 179-210

Abstract: Abstract Bossmann et al. (J Public Econ 91:1247–1271, 2007) found that estate taxes reduce the long-run wealth inequality. This result contrasts with the findings of the previous literature with idiosyncratic labor efficiency risk. We use a decomposition technique, developed by Davies (J Labor Econ 4:538–559, 1986), to reinvestigate the impact of estate taxes on the long-run wealth inequality. We find that the different results of estate taxes are due to the different redistribution effects.

Keywords: Wealth inequality; Bequest motives; Estate taxes; Lorenz dominance (search for similar items in EconPapers)
JEL-codes: D31 E21 H23 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s00199-017-1091-7

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