In this paper we examine the properties of the optimal linear estate tax in the presence of a complete set of tax instruments available to the social planner. We allow for both types of bequest motives, namely altruistic and accidential. We examine the case for estate taxation which seem to be...

This paper analyses the impact of asymmetric preferences with respect to inflation and output by policymakers on interest-rate reaction functions and test for their existence. A modified New Keynesian framework which makes it possible to identify the dominant type of asymmetry is developed and...