International Research Seminar "General equilibrium and optimality in monopolistic competition theory". Presentation by Ching-Yang Lin.

On December 26, 2012, at 16:00 MSSE was held a public research seminar. Report on the theme "How Income and Bequest Taxes Affect Income Inequality? The Role of Parental Transfers" by Ching-Yang Lin (International University of Japan).

C.Y.Lin

On December 26, 2012, 16:00-18:00.
Public research seminar.
Ching-Yang Lin (International University of Japan). "Productivity As If Space Mattered: An Application to Factor Markets Across China".

This paper investigates how income and bequest taxes affect income inequality through the channel of parental transfers. We consider parents' decisions on intergenerational transfers by providing education, and by leaving bequests. This feature highlights the effects of taxation on human capital investment: An increase in income tax rate or a decrease in bequest tax rate compress the risk premium of human capital returns, which in turn causes parents invest less on children's education. As a consequence, a smaller portion of population attain the college education, inducing a higher dispersion of human capital and its return (income). By conducting several numerical experiments, we find that the model prediction is quantitively supported by our empirical examination which utilizes the panel data of 20 OECD countries over 1980-2008.

Download the presentation:

Ching-Yang Lin. "How Income and Bequest Taxes Affect Income Inequality?.."

Venue: 47, pr. Rimskogo-Korsakova, St. Petersburg (building of the bank "Saint Petersburg", conference-hall).

Web-page of the International research seminars "General equilibrium and optimality in monopolistic competition theory"...