Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272345 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
BGPE Discussion Paper No. 217
Publisher: 
Friedrich-Alexander-Universität Erlangen-Nürnberg, Erlangen und Nürnberg
Abstract: 
Standard models on optimal estate taxation do not allow for intergenerational transmission of bequest motives. However, correlation in bequest motives may exist due to genetic and cultural transmission of preferences or indirect reciprocity. I introduce such intergenerational correlation to a simple model with heterogeneously altruistic parents. I derive two insights for optimal linear estate taxation under a Utilitarian welfare measure. First, this correlation implies a higher optimal estate tax rate. Second, estate tax rates should be higher for those parents who inherited themselves.
Subjects: 
estate taxation
inheritance taxation
indirect reciprocity
intergenerational preference transmission
JEL: 
H21
H24
D64
Document Type: 
Working Paper

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