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Intergenerational altruism and house prices: Evidence from bequest tax reforms in Italy

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  • Bellettini, Giorgio
  • Taddei, Filippo
  • Zanella, Giulio
Abstract
The degree of intergenerational altruism is estimated in a benchmark Barro-type OLG framework with imperfect altruism, exploiting the exogenous variation generated by reforms of the tax treatment of bequests and inter vivos real estate donations enacted in Italy between 2000 and 2001. Using longitudinal information on the housing stock and house prices in 13 large Italian cities between 1993 and 2004, the structural parameter of interest is estimated via the effect of the reform on house prices. We estimate a degree of intergenerational altruism ranging between 0.2 and 0.3, a magnitude consistent with existing parameterizations for the US economy.

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  • Bellettini, Giorgio & Taddei, Filippo & Zanella, Giulio, 2017. "Intergenerational altruism and house prices: Evidence from bequest tax reforms in Italy," European Economic Review, Elsevier, vol. 92(C), pages 1-12.
    • Handle: RePEc:eee:eecrev:v:92:y:2017:i:c:p:1-12
    DOI: 10.1016/j.euroecorev.2016.11.006
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    Cited by:

    1. Yuta Saito & Yosuke Takeda, 2022. "Capital taxation with parental incentives," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(6), pages 1310-1341, December.
    2. Wei Han & Ping Wang & Hongjie Dong, 2020. "Influence of Egoistic and Altruistic Bequest Motives on the Willingness to Participate in Reverse Mortgages in China," Asian Economic Journal, East Asian Economic Association, vol. 34(4), pages 430-463, December.

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    More about this item

    Keywords

    Bequests; Intergenerational altruism; Inheritance tax; Gift tax; House prices;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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