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Perceptions of Inherited Wealth and the Support for Inheritance Taxation

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  • Spencer Bastani
  • Daniel Waldenström

Abstract

We study how attitudes to inheritance taxation are influenced by information about the role of inherited wealth in society. Using a randomized experiment in a register‐linked Swedish survey, we find that informing individuals about the large aggregate importance of inherited wealth and its link to inequality of opportunity significantly increases the support for inheritance taxation. Changes in the perceived economic importance of inherited wealth and altered views on whether luck matters most for economic success appear to be driving factors behind the treatment effect. Our findings suggest that the low salience of inherited wealth could be one explanation behind the relatively marginalized role of inheritance taxation in developed economies.

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  • Spencer Bastani & Daniel Waldenström, 2021. "Perceptions of Inherited Wealth and the Support for Inheritance Taxation," Economica, London School of Economics and Political Science, vol. 88(350), pages 532-569, April.
    • Handle: RePEc:bla:econom:v:88:y:2021:i:350:p:532-569
    DOI: 10.1111/ecca.12359
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    Cited by:

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    2. Bellani, Luna & Berriochoa, Kattalina & Kapteina, Mark & Schwerdt, Guido, 2024. "Information Provision and Support for Inheritance Taxation: Evidence from a Representative Survey Experiment in Germany," IZA Discussion Papers 17099, Institute of Labor Economics (IZA).
    3. Leites, Martín & Rivero, Analía & Salas, Gonzalo, 2024. "The positionality of goods and the positional concern’s origin," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    4. Luca Spataro & Tommaso Crescioli, 2024. "How much capital should be taxed? A review of the quantitative and empirical literature," Journal of Economic Surveys, Wiley Blackwell, vol. 38(4), pages 1399-1436, September.
    5. Hope, David & Limberg, Julian & Weber, Nina Sophie, 2021. "Why Do (Some) Ordinary Americans Support Tax Cuts for the Rich? Evidence From a Randomized Survey Experiment," SocArXiv chk9b, Center for Open Science.
    6. Lu, Kelin, 2024. "Silver Spoons and Scales of Justice: The Fairness Preference over Unequal Intergenerational Wealth Transfers," MPRA Paper 121451, University Library of Munich, Germany.
    7. Blesse, Sebastian & Heinemann, Friedrich & Krieger, Tommy, 2021. "Informationsdefizite als Hindernis rationaler Wirtschaftspolitik: Ausmass, Ursachen und Gegenstrategien. Eine Studie mit Unterstützung der Brigitte Strube Stiftung," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 241989.
    8. Stefan Jestl, 2021. "Inheritance tax regimes: a comparison," Public Sector Economics, Institute of Public Finance, vol. 45(3), pages 363-385.
    9. Fehr, Dietmar & Müller, Daniel & Preuss, Marcel, 2024. "Social mobility perceptions and inequality acceptance," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 366-384.
    10. Ardanaz, Martín & Hübscher, Evelyne & Keefer, Philip & Sattler, Thomas, 2022. "Policy Misperceptions, Information, and the Demand for Redistributive Tax Reform: Experimental Evidence from Latin American Countries," IDB Publications (Working Papers) 12607, Inter-American Development Bank.
    11. Javier Olivera & Philippe Kerm, 2022. "Public support for tax policies in COVID-19 times: evidence from Luxembourg," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1395-1418, December.
    12. Elisa Stumpf & Silke Uebelmesser, 2024. "Lifting the Veil of Ignorance – Survey Experiments on Preferences for Wealth Redistribution," CESifo Working Paper Series 11126, CESifo.
    13. Lu, Kelin, 2024. "Silver Spoons and Scales of Justice: The Fairness Preference over Unequal Intergenerational Wealth Transfers," MPRA Paper 121232, University Library of Munich, Germany.
    14. Lekfuangfu, Warn N. & Powdthavee, Nattavudh & Riyanto, Yohanes E., 2023. "Luck or rights? An experiment on preferences for redistribution following inheritance of opportunity," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 106(C).
    15. Janusz Kud³a & Robert Kruszewski & Maciej Dudek & Konrad Walczyk, 2023. "The impact of bequest taxation on savings and transfers," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 18(2), pages 333-365, June.
    16. Sarah Perret, 2021. "Why were most wealth taxes abandoned and is this time different?," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 539-563, September.
    17. Hope, David & Limberg, Julian & Weber, Nina, 2023. "Why do (some) ordinary Americans support tax cuts for the rich? Evidence from a randomised survey experiment," European Journal of Political Economy, Elsevier, vol. 78(C).
    18. Margit Schratzenstaller, 2023. "Behavioral Responses to Inheritance Taxation. A Review of the Empirical Literature," WIFO Working Papers 668, WIFO.

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