Bequests, taxation and the distribution of income and wealth
Cowell, F.
(2012).
Bequests, taxation and the distribution of income and wealth.
Hacienda Pública Española,
200(1), 75-93.
(2012).
Bequests, taxation and the distribution of income and wealth.
Hacienda Pública Española,
200(1), 75-93.
We examine the role of taxation within a simple model of wealth accumulation transmission from generation to generation. It turns out that the role of bequest taxation may be central to the development of inequality in the long run. Whether it does so depends on the the way that consumption behaviour by each generation is determined.