The new CREEi working paper (#20-07), “Age-related taxation of bequests in the presence of a dependency risk” (2020), is now available.

The paper, co-authored by Marie-Louise Leroux, CREEi researcher and professor at ESG-UQAM, and Pierre Pestieau, professor at the Université de Liège, studies the optimal linear taxation of bequests when individuals differ in wages as well as in their risks of both mortality and old-age dependence.

The results suggest that, if the government is utilitarian, whether the taxation of early bequests should be given priority over the taxation of late bequests depends on the magnitude of insurance and redistributive concerns. While the efficiency concern unambiguously recommends taxation of early bequests, redistributive concerns yield ambiguous results.

To consult the working paper, click here.