Taxes on inheritances may induce heirs to discontinue family firms. Becausefirm dissolution incurs transaction costs, a preferential tax treatment of transferredfamily businesses seems to be desirable from a macroeconomic viewpoint.The support of dynastic succession, however, entails also a cost...

Effective from 2008, Germany´s top marginal income tax rate rises from 42 to 45 per cent. However, sole proprietorships and partnerships can opt for a preferential tax rate of 28.25 per cent for retained profits are taxed again upon distribution (§ 34a EStG-E). If they do so, profits are taxed...

This paper introduces wealth-dependent time preference into a simplemodel of endogenous growth. The model generates adjustment dynamics in linewith the historical facts on savings and economic growth in Europe from the HighMiddle Ages to today. Along a virtuous cycle of development more wealth...