Estate Taxation, Entrepreneurship, and Wealth / Marco Cagetti, Mariacristina De Nardi.

Format:

Book

Author/Creator:

Cagetti, Marco.

Contributor:

National Bureau of Economic Research.

De Nardi, Mariacristina.

Series:

Working Paper Series (National Bureau of Economic Research) no. w13160.

NBER working paper series no. w13160

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2007.

Summary:

We study the effects of abolishing estate taxation in a quantitative and realistic framework that includes the key features that policy makers are worried about: business investment, borrowing constraints, estate transmission, and wealth inequality. We use our model to estimate effective estate taxation. We consider various tax instruments to reestablish fiscal balance when abolishing estate taxation. We find that abolishing estate taxation would not generate large increases in inequality, and would, in some cases, generate increases in aggregate output and capital accumulation. If, however, the resulting revenue shortfall were financed through increased income or consumption taxation, the immensely rich, and the old among those in particular, would experience a welfare gain, at the cost of welfare losses for the vast majority of the population.

Notes:

Print version record

June 2007.