Inheritance taxation in a model with intergenerational time transfers

Pascal Belan () and Erwan Moussault

No 2018-05, THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise

Abstract: We consider a two-period overlapping generation model with rational altruism a la Barro, where time transfers and bequests are available to parents. Starting from a steady state where public spendings are nanced through taxation on capital income and labor income, we analyze a tax reform that consists in a shift of the tax burden from capital income tax towards inheritance tax. In the standard Barro model with no time transfer and inelastic labor supply, such a policy decreases steady-state welfare. In our setting, inheritance tax modi es parent's trade-o between time transfers and bequests. We identify situations where the tax reform increases welfare for all generations. Welfare improvement mainly depends on the magnitude of the e ect of higher time transfers on the labor supply of the young.

Keywords: family transfers; altruism; time transfers; inheritance tax. (search for similar items in EconPapers)
JEL-codes: D64 H22 H24 J22 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-dge, nep-lma, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://thema.u-cergy.fr/IMG/pdf/2018-05.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://thema.u-cergy.fr/IMG/pdf/2018-05.pdf [302 Found]--> https://thema.u-cergy.fr/IMG/pdf/2018-05.pdf)

Related works:
Journal Article: Inheritance Taxation in a Model with Intergenerational Time Transfers (2020)
Working Paper: Inheritance Taxation in a Model with Intergenerational Time Transfers (2019)
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:ema:worpap:2018-05

Access Statistics for this paper

More papers in THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise Contact information at EDIRC.
Bibliographic data for series maintained by Stefania Marcassa ( this e-mail address is bad, please contact ).