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Fiscal policy when individuals differ regarding to altruism and labor supply

Author

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  • MICHEL, Philippe

    (IUF and GREQAM, University of Marseille II)

  • PESTIEAU, Pierre

    (CREPP, University of Li`ege, CORE and Delta)

Abstract

This paper studies the incidence of tax-transfer policy in a growth model wherein individuals differ according to their level of intergenerational altruism and have an endogenous labor supply. The main results is that public debt is neutral at the macro level but redistributes resources from nonaltruists to altruists. Capital income taxation can hurt the nonaltruists who do not have any wealth more than the altruists who own all of it. Whether or not the altruists supply a positive amount of labor makes a big difference as to the incidence of alternative tax transfer policies.

Suggested Citation

  • MICHEL, Philippe & PESTIEAU, Pierre, 1998. "Fiscal policy when individuals differ regarding to altruism and labor supply," LIDAM Discussion Papers CORE 1998040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:1998040
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    References listed on IDEAS

    as
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    Cited by:

    1. Carlos Garriga & Fernando Sánchez-Losada, 2009. "Estate taxation with warm-glow altruism," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 8(2), pages 99-118, August.

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