@techreport{Grossmann2005Pareto,
abstract = {Altruistic parents may transfer resources to their offspring by providing education, and by
leaving bequests. We show that in the presence of wage taxation, a small bequest tax may
improve efficiency in an overlapping-generations framework with only intended bequests, by
enhancing incentives of parents to invest in their children?s education. This result holds even
if the wage tax rate is held constant when introducing bequest taxation. We also calculate an
optimal mix of wage and bequest taxes with alternative parameter combinations. In all cases,
the optimal wage tax rate is clearly higher than the optimal bequest tax rate, but the latter is
generally positive when the required government revenue in the economy is sufficiently high.},
author = {Volker Grossmann and Panu Poutvaara},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H31; I21; H21; D64; 330; bequest taxation; bequests; education; Pareto improvement; Erbschaftsteuer; Optimale Besteuerung; Bildungsinvestition; Privater Transfer; Lohnsteuer; Overlapping Generations; Pareto-Optimum; Theorie},
language = {eng},
number = {1515},
title = {Pareto-improving bequest taxation},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18979},
year = {2005}
}
