CREMER, Helmuth; PESTIEAU, Pierre; ROCHET, Jean-Charles - Center for Operations Research and Econometrics (CORE), … - 2001
This paper extends the Atkinson-Stiglitz model of direct and indirect taxation to a dynamic setting with two unobservable characteristics: productive ability and inherited wealth. Bequests are motivated by the "joy of giving". A child's inheritance is a random variable with a probability...