Bequests, taxation and the distribution of wealth in a general equilibrium model

• 成果类型: Article
• 署名作者: Bossmann, Martin; Kleiber, Christian; Waelde, Klaus
• 署名单位: University of Wurzburg; Leibniz Association; Ifo Institut; Technische Universitat Dresden; University of Basel; Universite Catholique Louvain
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2007.01.002
• 发表日期: 2007
• 页码: 1247-1271
• 关键词: bequest; taxation; wealth inequality; OLG model; analytical solution

摘要

This paper examines the role of bequests and of taxation on bequests for the distribution of wealth. We investigate a model with overlapping generations and heterogenous households where parents derive utility directly from their bequests. We obtain all results analytically. Using the coefficient of variation as the measure of inequality, bequests per se diminish the inequality of wealth since they raise private savings and hence average wealth holdings more than the variance of wealth. From a policy perspective, taxing bequests and redistributing government revenue lump-sum among the young generation further decreases wealth inequality. (c) 2007 Elsevier B.V. All rights reserved.