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Diskussionspapiere, Wirtschaftswissenschaftliche Fakultät, Universität Hannover >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/27197
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| DC Field | | Value | | Language |
| dc.contributor.author | | Grossmann, Volker | | en_US |
| dc.contributor.author | | Strulik, Holger | | en_US |
| dc.date.accessioned | | 2008-03-28 | | en_US |
| dc.date.accessioned | | 2009-08-06T13:11:16Z | | - |
| dc.date.available | | 2009-08-06T13:11:16Z | | - |
| dc.date.issued | | 2008 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/27197 | | - |
| dc.description.abstract | | Inheritance taxes may induce heirs to discontinue family firms. Because firm dissolution incurs transaction costs, a preferential tax treatment of transferred family businesses seems to be desirable from a macroeconomic viewpoint. The support of dynastic succession, however, entails also a cost on the economy if firm continuation by less able heirs prevents entry into entrepreneurship. Here, we investigate analytically and quantitatively the trade-off between transaction costs saved and creative destruction prevented. We find that a unique general equilibrium exists at which, depending on the institutional setup, low-ability heirs either abandon (Type 1) or continue (Type 2) a family business. A calibration of the model with German data suggests that preferential tax treatment of family firms has severe negative consequences on macroeconomic performance if it causes a threshold crossing from Type 1 to Type 2 equilibrium. It also reveals that the targeted persons, i.e. the entrepreneurs that are caused to continue a business, always lose relative to their status in an economy without continuation-friendly tax policy. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | Fachbereich Wirtschaftswiss., Univ. Hannover | | en_US |
| dc.relation.ispartofseries | | Discussion papers // School of Economics and Management of the Hanover Leibniz University 387 | | en_US |
| dc.subject.jel | | H25 | | en_US |
| dc.subject.jel | | L26 | | en_US |
| dc.subject.jel | | J24 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | Bequest Taxation | | en_US |
| dc.subject.keyword | | Creative Destruction | | en_US |
| dc.subject.keyword | | Entrepreneurship | | en_US |
| dc.subject.keyword | | Family Firms | | en_US |
| dc.subject.keyword | | Preferential Tax Treatment | | en_US |
| dc.subject.stw | | Steuerbegünstigung | | en_US |
| dc.subject.stw | | Familienunternehmen | | en_US |
| dc.subject.stw | | Betriebsübergang | | en_US |
| dc.subject.stw | | Unternehmer | | en_US |
| dc.subject.stw | | Innovation | | en_US |
| dc.subject.stw | | Transaktionskosten | | en_US |
| dc.subject.stw | | Allgemeines Gleichgewicht | | en_US |
| dc.subject.stw | | Deutschland | | en_US |
| dc.title | | Should continued family firms face lower taxes than other estates? | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 560550065 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | - |
| Appears in Collections: | | Diskussionspapiere, Wirtschaftswissenschaftliche Fakultät, Universität Hannover
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