We study the impact of income taxation on intergenerational income correlation. We estimate a life cycle dynastic model and conduct counterfactual analysis to observe the effects of various tax regimes. Compared to a no tax environment, a flat tax regime reduces the correlation only by one...

We study the impact of income taxation on intergenerational income correlation. We estimate a life cycle dynastic model and conduct counterfactual analysis to observe the effects of various tax regimes. Compared to a no tax environment, a flat tax regime reduces the correlation only by one...

Most currently employed Integrated Assessment Models are of a dynastic nature, commonly assuming a fixed relation between pure time preference, economic growth and interest rate. This rigid relation has led to much debate on which level of discounting to adopt. Especially the quantitative...