Intergenerational links, taxation, and wealth distribution

Jing Wan and Shenghao Zhu ()

MPRA Paper from University Library of Munich, Germany

Abstract: We extend one of the main findings in Bossmann et al. (2007)("Bequests, taxation and the distribution of wealth in a general equilibrium model," Journal of Public Economics, 91, 1247-1271). Bequest motives per se reduce wealth inequality. We show that the result holds for a stronger criterion of inequality comparison between distributions. Bossmann et al. (2007) use the coefficient of varation as the inequality measure. Our Lorenz dominance result implies their result. We also strengthen two other conclusions in Bossmann et al. (2007). Earnings ability inheritance could increase wealth inequality and estate taxes could decrease wealth inequality.

Keywords: Wealth inequality; Bequest motives; Inheritance of earings ability; Estate taxes; Lorenz dominance (search for similar items in EconPapers)
JEL-codes: D31 E21 H23 (search for similar items in EconPapers)
Date: 2012-06-18
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Citations: View citations in EconPapers (1)

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