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This paper develops a theory of optimal taxation with behavioral agents. We use a general behavioral framework that …
Persistent link: https://www.econbiz.de/10013016014
We develop a theory of optimal estate taxation in a model where bequest inequality is driven by differences in parental …
Persistent link: https://www.econbiz.de/10013087049
For an economy with altruistic parents facing productivity shocks, the optimal estate taxation is progressive: fortunate parents should face lower net returns on their inheritances. This progressivity reflects optimal mean reversion in consumption, which ensures that a long-run steady state...
Persistent link: https://www.econbiz.de/10012778251