University of Regensburg
Department of Economics
Institutional Affiliation: University of Regensburg
Information about this author at RePEc
NBER Working Papers and Publications
|September 2018||Inheritance Taxation and Wealth Effects on the Labor Supply of Heirs|
with Lukas Mayr, Dominik Sachs: w25081
The taxation of bequests can have a positive impact on the labor supply of heirs through wealth effects. This leads to an increase in future labor income tax revenue on top of direct bequest tax revenue. We first show in a theoretical model that a simple back-of-the-envelope calculation, based on existing estimates for the reduction in earnings after wealth transfers, fails: the marginal propensity to earn out of unearned income is not a sufficient statistic for the calculation of this effect because (i) heirs anticipate the reduction in net bequests and adjust their labor supply already prior to inheriting, and (ii) when bequest receipt is stochastic, even those who ex post end up not inheriting anything respond ex ante to the implied change in their distribution of net bequests. We q...
Published: Fabian Kindermann & Lukas Mayr & Dominik Sachs, 2020. "Inheritance taxation and wealth effects on the labor supply of heirs," Journal of Public Economics, .
|March 2016||Bargaining over Babies: Theory, Evidence, and Policy Implications|
with Matthias Doepke: w22072
It takes a woman and a man to make a baby. This fact suggests that for a birth to take place, the parents should first agree on wanting a child. Using newly available data on fertility preferences and outcomes, we show that indeed, babies are likely to arrive only if both parents desire one. In addition, there are many couples who disagree on having babies, and in low-fertility countries women are much more likely than men to be opposed to having another child. We account for this evidence with a quantitative model of household bargaining in which the distribution of the burden of child care between mothers and fathers is a key determinant of fertility. The model implies that fertility is highly responsive to targeted policies that lower the child care burden specifically for mothers.
Published: Matthias Doepke & Fabian Kindermann, 2019. "Bargaining over Babies: Theory, Evidence, and Policy Implications," American Economic Review, vol 109(9), pages 3264-3306. citation courtesy of
|October 2014||High Marginal Tax Rates on the Top 1%? Lessons from a Life Cycle Model with Idiosyncratic Income Risk|
with Dirk Krueger: w20601
In this paper we argue that very high marginal labor income tax rates are an effective tool for social insurance even when households have preferences with high labor supply elasticity, make dynamic savings decisions, and policies have general equilibrium effects. To make this point we construct a large scale Overlapping Generations Model with uninsurable labor productivity risk, show that it has a wealth distribution that matches the data well, and then use it to characterize fiscal policies that achieve a desired degree of redistribution in society. We find that marginal tax rates on the top 1% of the earnings distribution of close to 90% are optimal. We document that this result is robust to plausible variation in the labor supply elasticity and holds regardless of whether social welfar...