Contributions

  • Werning, Ivǹ - Contributor
  • Massachusetts Institute of Technology. Dept. of Economics - Contributor

Publication

2006 - Massachusetts Institute of Technology, Dept. of Economics, Cambridge, MA, Massachusetts

Language

English

Word Count

9,500 words, Guess

Page Count

38 pages

Identifiers

Description

For an economy with altruistic parents facing productivity shocks, the optimal estate taxation is progressive: fortunate parents should face lower net returns on their inheritances. This progressivity reflects optimal mean reversion in consumption, which ensures that a long-run steady state exists with bounded inequality-avoiding immiseration. Keywords: progressivity, inheritance, estate taxation. JEL Classifications: E6.

Subjects

Series Statement

  • Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 06-27
  • Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 06-27.

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