The line between normative and positive economic analysis is, supposedly, a sharp one. The former allows for value judgments, the latter does not. This distinction is mentioned in all basic texts in our profession, and in all introductory courses. Then, all too often, such as in the present...

This paper presents a comprehensive analysis of the role of capital taxation in advanced economies with a focus on the Swedish experience. We synthesize the existing theoretical literature, present facts about the capital stock and its distribution, review current capital tax practices and...

This paper presents a comprehensive analysis of the role of capital taxation in advanced economies with a focus on the Swedish experience. We synthesize the existing theoretical literature, present facts about the capital stock and its distribution, review current capital tax practices and...

We introduce intergenerational transfers into a general equilihrium life-cycle model in order to explain observed levels of wealth heterogeneity. In our overlapping generations model, heterogenous agents face uncertain lifetime and leave both accidental and voluntary bequests to their cinldren....

In a recent representative survey, German citizens are asked whether or not inherited wealth beyond a certain amount should be taxed. Almost 60 percent stated that it should not be taxed. We use this survey to identify the factors that drive this fundamental opposition against the taxation of...