Wealth inequality, family background, and estate taxation

• 成果类型: Article
• 署名作者: De Nardi, Mariacristina; Yang, Fang
• 署名单位: University of London; University College London; Federal Reserve System - USA; Federal Reserve Bank - Chicago; University of London; London School Economics & Political Science; National Bureau of Economic Research; Louisiana State University System; Louisiana State University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2015.10.005
• 发表日期: 2016
• 页码: 130-145
• 关键词: Wealth inequality; Parental background; estate taxation; bequests; Earnings shocks

摘要

This paper generates two main contributions. First, it provides a new theory of wealth inequality that merges two empirically relevant forces generating inequality: bequest motives and inheritance of ability across generations; and an earnings process that allows for more earnings risk for the richest. Second, it uses the resulting calibrated framework to study the effects of changing estate taxation. Increasing the estate tax reduces the wealth concentration in the hands of the richest few and the economic advantage of being born to a rich and super-rich family at the cost of reduced aggregate capital and output. However, all of these effects are quite small. In contrast, increasing estate taxation can generate a significant welfare gain to a newborn under the veil of ignorance, but this comes at a large welfare cost for the super-rich. (C) 2015 The Authors. Published by Elsevier B.V.