@techreport{NBERw12600,
 title = "Progressive Estate Taxation",
 author = "Emmanuel Farhi and Ivan Werning",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "12600",
 year = "2006",
 month = "October",
 URL = "http://www.nber.org/papers/w12600",
 abstract = {For an economy with altruistic parents facing productivity shocks, the optimal estate taxation is progressive: fortunate parents should face lower net returns on their inheritances.  This progressivity reflects optimal mean reversion in consumption, which ensures that a long-run steady state exists with bounded inequality - avoiding immiseration.},
}