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Behavioral responses to inheritance tax: Evidence from notches in France

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  • Goupille-Lebret, Jonathan
  • Infante, Jose

Abstract

For the first time, we exploit quasi-experimental variation to investigate the impact of inheritance taxation on wealth accumulation. Using bunching and difference-in-differences methods, we directly estimate several behavioral responses during lifetime, rather than relying solely on observations at death. Our empirical findings shed new light upon wealth accumulation and bequest motives. Taken together, the small responses to inheritance tax estimated cannot be supported by the desire to retain control over wealth.

Suggested Citation

  • Goupille-Lebret, Jonathan & Infante, Jose, 2018. "Behavioral responses to inheritance tax: Evidence from notches in France," Journal of Public Economics, Elsevier, vol. 168(C), pages 21-34.
    • Handle: RePEc:eee:pubeco:v:168:y:2018:i:c:p:21-34
    DOI: 10.1016/j.jpubeco.2018.09.016
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    More about this item

    Keywords

    Taxation; Behavioral responses; Bunching; Bequest;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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