The Crucial Role of Social Welfare Criteria and Individual Heterogeneity for Optimal Inheritance Taxation

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The Crucial Role of Social Welfare Criteria and Individual Heterogeneity for Optimal Inheritance Taxation. / Garcia Miralles, Esteban.

In: The B.E. Journal of Economic Analysis & Policy, Vol. 10, No. 2, 29.01.2020.

Research output: Contribution to journalJournal articleResearchpeer-review

Harvard

Garcia Miralles, E 2020, 'The Crucial Role of Social Welfare Criteria and Individual Heterogeneity for Optimal Inheritance Taxation', The B.E. Journal of Economic Analysis & Policy, vol. 10, no. 2. https://doi.org/10.1515/bejeap-2019-0274

APA

Garcia Miralles, E. (2020). The Crucial Role of Social Welfare Criteria and Individual Heterogeneity for Optimal Inheritance Taxation. The B.E. Journal of Economic Analysis & Policy, 10(2). https://doi.org/10.1515/bejeap-2019-0274

Vancouver

Garcia Miralles E. The Crucial Role of Social Welfare Criteria and Individual Heterogeneity for Optimal Inheritance Taxation. The B.E. Journal of Economic Analysis & Policy. 2020 Jan 29;10(2). https://doi.org/10.1515/bejeap-2019-0274

Author

Garcia Miralles, Esteban. / The Crucial Role of Social Welfare Criteria and Individual Heterogeneity for Optimal Inheritance Taxation. In: The B.E. Journal of Economic Analysis & Policy. 2020 ; Vol. 10, No. 2.

Bibtex

@article{e84a756df30e4520a93a4084be0aab3f,
title = "The Crucial Role of Social Welfare Criteria and Individual Heterogeneity for Optimal Inheritance Taxation",
abstract = "This paper extends the calibrations of Piketty and Saez (2013) to unveil the importance of the assumed social welfare criteria and its interplay with individual heterogeneity on optimal inheritance taxation. I calibrate the full social optimal tax rate and find that it is highly sensitive to the assumed social welfare criteria. The optimal tax rate ranges from negative (under a utilitarian criterion) to positive and large (even assuming joy of giving motives). A decreasing marginal utility of consumption does not affect the results qualitatively given the underlying distribution of wealth and income. I also calibrate the optimal tax rate by percentile of the distribution of bequest received, as in Piketty and Saez, but accounting for heterogeneity in wealth and labor income. This leads to significant variation in the optimal tax rate among zero-bequest receivers, contrary to their finding of a constant tax rate.",
keywords = "Faculty of Social Sciences, optimal inheritance taxation, social welfare function, wealth inequality",
author = "{Garcia Miralles}, Esteban",
year = "2020",
month = "1",
day = "29",
doi = "10.1515/bejeap-2019-0274",
language = "English",
volume = "10",
journal = "The B.E. Journal of Economic Analysis & Policy",
issn = "2194-6108",
publisher = "Walterde Gruyter GmbH",
number = "2",

}

RIS

TY - JOUR

T1 - The Crucial Role of Social Welfare Criteria and Individual Heterogeneity for Optimal Inheritance Taxation

AU - Garcia Miralles, Esteban

PY - 2020/1/29

Y1 - 2020/1/29

N2 - This paper extends the calibrations of Piketty and Saez (2013) to unveil the importance of the assumed social welfare criteria and its interplay with individual heterogeneity on optimal inheritance taxation. I calibrate the full social optimal tax rate and find that it is highly sensitive to the assumed social welfare criteria. The optimal tax rate ranges from negative (under a utilitarian criterion) to positive and large (even assuming joy of giving motives). A decreasing marginal utility of consumption does not affect the results qualitatively given the underlying distribution of wealth and income. I also calibrate the optimal tax rate by percentile of the distribution of bequest received, as in Piketty and Saez, but accounting for heterogeneity in wealth and labor income. This leads to significant variation in the optimal tax rate among zero-bequest receivers, contrary to their finding of a constant tax rate.

AB - This paper extends the calibrations of Piketty and Saez (2013) to unveil the importance of the assumed social welfare criteria and its interplay with individual heterogeneity on optimal inheritance taxation. I calibrate the full social optimal tax rate and find that it is highly sensitive to the assumed social welfare criteria. The optimal tax rate ranges from negative (under a utilitarian criterion) to positive and large (even assuming joy of giving motives). A decreasing marginal utility of consumption does not affect the results qualitatively given the underlying distribution of wealth and income. I also calibrate the optimal tax rate by percentile of the distribution of bequest received, as in Piketty and Saez, but accounting for heterogeneity in wealth and labor income. This leads to significant variation in the optimal tax rate among zero-bequest receivers, contrary to their finding of a constant tax rate.

KW - Faculty of Social Sciences

KW - optimal inheritance taxation

KW - social welfare function

KW - wealth inequality

U2 - 10.1515/bejeap-2019-0274

DO - 10.1515/bejeap-2019-0274

M3 - Journal article

VL - 10

JO - The B.E. Journal of Economic Analysis & Policy

JF - The B.E. Journal of Economic Analysis & Policy

SN - 2194-6108

IS - 2

ER -

ID: 234502383