@techreport{NBERw18792,
 title = "Estate Taxation with Altruism Heterogeneity",
 author = "Emmanuel Farhi and Iván Werning",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "18792",
 year = "2013",
 month = "February",
 URL = "http://www.nber.org/papers/w18792",
 abstract = {We develop a theory of optimal estate taxation in a model where bequest inequality is driven by differences in parental altruism. We show that a wide range of results are possible, from positive taxes to subsidies, depending on redistributive objectives implicit in the cardinal specification of utility and social welfare functions. We propose a normalization that is helpful in classifying these different possibilities. We isolate cases where the optimal policy bans negative bequests and taxes positive bequests, features present in most advanced countries.},
}