Three Essays on Inheritance Taxation

Abstract : This thesis analyzes the impact of inheritance taxation on growth and labor supply, considering the diversity of intergenerational family transfers, such that bequests, parent's education spendings or time transfers. These forms of family solidarity generate externalities, which impact growth and labor supply, and affect the effectiveness of tax policies. Concerning inheritance tax which reduces the incentive to save, it can also increase educational investment or time transfers, which can positively affect household productivity and labor supply. For this purpose, we use overlapping generations models with altruism towards offspring. The thesis is divided into three chapters. The first chapter studies the impact of public debt on intergenerational transfers and on human capital growth, using a simple tax structure with labor and bequest taxes. In this model, parents augment their children's income through education and bequest. When public debt is not available, we show that the long run growth is higher thanks to an increase of the gap between the two taxes, which underlines the role of inheritance taxation. The second chapter proposes a model with rational altruism textit{`a la} Barro, where time transfers and bequests are available to parents. We analyze a shift from capital income tax towards inheritance tax, leaving constant the capital labor ratio. We show that this reform may increase welfare of all generations. Welfare improvement mainly depends on the effect of the reform on the labor supply. This tax reform is also implemented in the third chapter where we consider that dynasties differ in productivity and altruism. We show that the tax reform increases the welfare of less altruistic dynasties but decreases welfare of the most altruistic one. Extending the model with time transfers and elastic labor supply, we identify situations where the tax reform is Pareto improving.
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Erwan Moussault. Three Essays on Inheritance Taxation. Economics and Finance. Université de Cergy Pontoise, 2018. English. ⟨NNT : 2018CERG0967⟩. ⟨tel-02284367⟩

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