Fiscal policy, composition of intergenerational transfers, and income distribution
Alonso Carrera, Jaime (Universidade de Vigo)
Caballé, Jordi (Universitat Autònoma de Barcelona. Departament d'Economia i d'Història Econòmica)
Raurich, Xavier (Universitat de Barcelona)

Date:	2012
Abstract:	In this paper, we characterize the relationship between the initial distribution of human capital and physical inheritances among individuals and the long-run distribution of these two variables. In a model with indivisible investment in education, we analyze how the initial distribution of income determines the posterior intergenerational mobility in human capital and the evolution of intragenerational income inequality. This analysis enables us in turn to characterize the effects of fiscal policy on future income distribution and mobility when the composition of intergenerational transfers is endogenous. To this end, we consider the following government interventions: a pay-as-you-go social security system, a tax on inheritance, a tax on capital income, a tax on labor income, and a subsidy on education investment.
Grants:	Ministerio de Educación y Ciencia ECO2008-02752 Ministerio de Educación y Ciencia ECO2009-09847 Ministerio de Educación y Ciencia ECO2009-06953 Ministerio de Educación y Ciencia ECO2011-23959 Agència de Gestió d'Ajuts Universitaris i de Recerca 2009/SGR-00350 Agència de Gestió d'Ajuts Universitaris i de Recerca 2009/SGR-1051
Note:	Financial support from the FundaciÛn RamÛn Areces; MOVE; FEDER; the Spanish Ministry of Education through grants ECO2008-02752, ECO2009-09847, ECO2009-06953, and ECO2011-23959; the Generalitat of Catalonia through the grants SGR2009-00350 and SGR2009-1051; and Xunta de Galicia through grant 10PXIB300177PR is also gratefully acknowledged
Rights:	Tots els drets reservats.
Language:	Anglès
Document:	Article ; recerca ; Versió acceptada per publicar
Subject:	Altruism ; Intergenerational transfers ; Human capital ; Income distribution
Published in:	Journal of economic behavior & organization, Vol. 84 (2012) , p. 62-84, ISSN 0167-2681

DOI: 10.1016/j.jebo.2012.07.013

Postprint 38 p, 808.0 KB

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