TY  - JOUR
AU  - Farhi,Emmanuel
AU  - Werning,Ivan
TI  - Progressive Estate Taxation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12600
PY  - 2006
Y2  - October 2006
UR  - http://www.nber.org/papers/w12600
L1  - http://www.nber.org/papers/w12600.pdf
N1  - Author contact info:
Emmanuel Farhi
Harvard University
Department of Economics
Littauer Center
Cambridge, MA 02138
Tel: 617/496-1835
Fax: 617/495-8570
E-Mail: efarhi@harvard.edu

Ivan Werning
Department of Economics
MIT
50 Memorial Drive, E51-251a
Cambridge, MA 02142-1347
Tel: 617/452-3662
Fax: 617/253-1330
E-Mail: iwerning@mit.edu
M3  - presented at "Summer Institute 2006 submissions", July 10-August 4, 2006
AB  - 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.
ER  -