This paper examines the impact of international automatic exchange of information (AEOI) treaties on cross-border investments in tax havens. Using a restricted version of the BIS Locational Banking Statistics we find that AEOIs significantly reduced cross-border deposits. A sectoral breakdown assessment reveals that households were the key driving force behind this contraction. However, we also document evidence of households’ deposits shifting to non-AEOI haven countries and larger deposits by non-bank financial institutions between tax haven countries, suggesting an increased use of shell corporation networks since AEOI introduction. Extending the analysis to portfolio and direct investment, we observe changes in investment patterns vis-à-vis tax havens which are consistent with a significant impact of AEOI treaties on these forms of cross-border investment.
{"title":"Automatic for the (tax) people: information sharing and cross-border investment in tax havens","authors":"Agustín Bénétrix, Lorenz Emter, Martin Schmitz","doi":"10.1093/epolic/eiae041","DOIUrl":"https://doi.org/10.1093/epolic/eiae041","url":null,"abstract":"This paper examines the impact of international automatic exchange of information (AEOI) treaties on cross-border investments in tax havens. Using a restricted version of the BIS Locational Banking Statistics we find that AEOIs significantly reduced cross-border deposits. A sectoral breakdown assessment reveals that households were the key driving force behind this contraction. However, we also document evidence of households’ deposits shifting to non-AEOI haven countries and larger deposits by non-bank financial institutions between tax haven countries, suggesting an increased use of shell corporation networks since AEOI introduction. Extending the analysis to portfolio and direct investment, we observe changes in investment patterns vis-à-vis tax havens which are consistent with a significant impact of AEOI treaties on these forms of cross-border investment.","PeriodicalId":47772,"journal":{"name":"Economic Policy","volume":"44 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-08-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142202215","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper evaluates claims about large macroeconomic implications of new advances in AI. It starts from a task-based model of AI’s effects, working through automation and task complementarities. So long as AI’s microeconomic effects are driven by cost savings/productivity improvements at the task level, its macroeconomic consequences will be given by a version of Hulten’s theorem: GDP and aggregate productivity gains can be estimated by what fraction of tasks are impacted and average task-level cost savings. Using existing estimates on exposure to AI and productivity improvements at the task level, these macroeconomic effects appear nontrivial but modest—no more than a 0.66% increase in total factor productivity (TFP) over 10 years. The paper then argues that even these estimates could be exaggerated, because early evidence is from easy-to-learn tasks, whereas some of the future effects will come from hard-to-learn tasks, where there are many context-dependent factors affecting decision-making and no objective outcome measures from which to learn successful performance. Consequently, predicted TFP gains over the next 10 years are even more modest and are predicted to be less than 0.53%. I also explore AI’s wage and inequality effects. I show theoretically that even when AI improves the productivity of low-skill workers in certain tasks (without creating new tasks for them), this may increase rather than reduce inequality. Empirically, I find that AI advances are unlikely to increase inequality as much as previous automation technologies because their impact is more equally distributed across demographic groups, but there is also no evidence that AI will reduce labor income inequality. Instead, AI is predicted to widen the gap between capital and labor income. Finally, some of the new tasks created by AI may have negative social value (such as design of algorithms for online manipulation), and I discuss how to incorporate the macroeconomic effects of new tasks that may have negative social value.
{"title":"The simple macroeconomics of AI","authors":"Daron Acemoglu","doi":"10.1093/epolic/eiae042","DOIUrl":"https://doi.org/10.1093/epolic/eiae042","url":null,"abstract":"This paper evaluates claims about large macroeconomic implications of new advances in AI. It starts from a task-based model of AI’s effects, working through automation and task complementarities. So long as AI’s microeconomic effects are driven by cost savings/productivity improvements at the task level, its macroeconomic consequences will be given by a version of Hulten’s theorem: GDP and aggregate productivity gains can be estimated by what fraction of tasks are impacted and average task-level cost savings. Using existing estimates on exposure to AI and productivity improvements at the task level, these macroeconomic effects appear nontrivial but modest—no more than a 0.66% increase in total factor productivity (TFP) over 10 years. The paper then argues that even these estimates could be exaggerated, because early evidence is from easy-to-learn tasks, whereas some of the future effects will come from hard-to-learn tasks, where there are many context-dependent factors affecting decision-making and no objective outcome measures from which to learn successful performance. Consequently, predicted TFP gains over the next 10 years are even more modest and are predicted to be less than 0.53%. I also explore AI’s wage and inequality effects. I show theoretically that even when AI improves the productivity of low-skill workers in certain tasks (without creating new tasks for them), this may increase rather than reduce inequality. Empirically, I find that AI advances are unlikely to increase inequality as much as previous automation technologies because their impact is more equally distributed across demographic groups, but there is also no evidence that AI will reduce labor income inequality. Instead, AI is predicted to widen the gap between capital and labor income. Finally, some of the new tasks created by AI may have negative social value (such as design of algorithms for online manipulation), and I discuss how to incorporate the macroeconomic effects of new tasks that may have negative social value.","PeriodicalId":47772,"journal":{"name":"Economic Policy","volume":"1 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141946434","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Since 2015, more than 140 countries have cooperated in the OECD’s “Base Erosion and Profit Shifting” (BEPS) project to combat multinational tax avoidance. Several of the key actions, most importantly measures against tax-treaty shopping, require changes to double taxation treaties. The OECD designed a special instrument—the ‘multilateral instrument’ (MLI) - to allow for a swift implementation of BEPS-related tax treaty changes. In this paper, we show that MLI take-up is incomplete, we present (partly surprising) correlates of the take-up decision and develop a simple theoretical model to rationalize the observed take-up behavior. A key insight is that conduit countries, which are the beneficiaries of tax treaty shopping, can benefit from anti-treaty shopping laws as firms have incentives to scale-up real activity in conduit nations in order to be exempted from the new anti-treaty shopping rules. Empirical findings are consistent with these considerations: MLI adoption rates of conduit countries are high. Treaty shopping has, to date, not significantly dropped. And there is indeed indication that firms have scaled up their real economic activity in conduit nations. Overall, our findings reject that treaty shopping has been “killed” as envisaged by the OECD. JEL classification: F21, F23, F53, H25, H26, H32, H87, K34
{"title":"Multilateral Tax Treaty Revision to Combat Tax Avoidance: On the Merits and Limits of BEPS’s Multilateral Instrument","authors":"Antonia Hohmann, Valeria Merlo, Nadine Riedel","doi":"10.1093/epolic/eiae043","DOIUrl":"https://doi.org/10.1093/epolic/eiae043","url":null,"abstract":"Since 2015, more than 140 countries have cooperated in the OECD’s “Base Erosion and Profit Shifting” (BEPS) project to combat multinational tax avoidance. Several of the key actions, most importantly measures against tax-treaty shopping, require changes to double taxation treaties. The OECD designed a special instrument—the ‘multilateral instrument’ (MLI) - to allow for a swift implementation of BEPS-related tax treaty changes. In this paper, we show that MLI take-up is incomplete, we present (partly surprising) correlates of the take-up decision and develop a simple theoretical model to rationalize the observed take-up behavior. A key insight is that conduit countries, which are the beneficiaries of tax treaty shopping, can benefit from anti-treaty shopping laws as firms have incentives to scale-up real activity in conduit nations in order to be exempted from the new anti-treaty shopping rules. Empirical findings are consistent with these considerations: MLI adoption rates of conduit countries are high. Treaty shopping has, to date, not significantly dropped. And there is indeed indication that firms have scaled up their real economic activity in conduit nations. Overall, our findings reject that treaty shopping has been “killed” as envisaged by the OECD. JEL classification: F21, F23, F53, H25, H26, H32, H87, K34","PeriodicalId":47772,"journal":{"name":"Economic Policy","volume":"22 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141969467","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Germany has become the second-most important destination for migrants worldwide. Using all waves from the microcensus, we study their labor market integration over the last 50 years and highlight differences to the US case. Although the employment gaps between immigrant and native men decline after arrival, they remain large for most cohorts; the average gap after one decade is 10 pp. Conversely, income gaps tend to widen post-arrival. Compositional differences explain how those gaps vary across groups, and why they worsened over time; after accounting for composition, integration outcomes show no systematic trend. Still, economic conditions do matter, and employment collapsed in some cohorts after structural shocks hit the German labor market in the early 1990s. Lastly, we examine the integration of recent arrivals during the European refugee “crisis” and the Russo-Ukrainian war.
{"title":"The Integration of Migrants in the German Labor Market: Evidence Over 50 Years","authors":"Paul Berbée, Jan Stuhler","doi":"10.1093/epolic/eiae040","DOIUrl":"https://doi.org/10.1093/epolic/eiae040","url":null,"abstract":"Germany has become the second-most important destination for migrants worldwide. Using all waves from the microcensus, we study their labor market integration over the last 50 years and highlight differences to the US case. Although the employment gaps between immigrant and native men decline after arrival, they remain large for most cohorts; the average gap after one decade is 10 pp. Conversely, income gaps tend to widen post-arrival. Compositional differences explain how those gaps vary across groups, and why they worsened over time; after accounting for composition, integration outcomes show no systematic trend. Still, economic conditions do matter, and employment collapsed in some cohorts after structural shocks hit the German labor market in the early 1990s. Lastly, we examine the integration of recent arrivals during the European refugee “crisis” and the Russo-Ukrainian war.","PeriodicalId":47772,"journal":{"name":"Economic Policy","volume":"33 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141742139","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Which households are most affected by energy price shocks? How do interventions in energy markets affect these patterns? To investigate these questions, this paper introduces a measurement framework that leverages granular property-level data representing more than 50% of the English and Welsh housing stock. This framework will form the basis for current and future studies on the heterogeneous effects of the energy crisis more broadly. We find that the energy price shock has a more pronounced effect on relatively more affluent areas where energy use is higher at baseline. We document that commonly used untargeted interventions in energy markets significantly weaken market price signals for able-to-pay households. Alternative, more targeted policies are cheaper, easily implementable, and could better align energy saving incentives.
{"title":"Distributional and climate implications of policy responses to energy price shocks","authors":"Thiemo Fetzer, Ludovica Gazze, Menna Bishop","doi":"10.1093/epolic/eiae038","DOIUrl":"https://doi.org/10.1093/epolic/eiae038","url":null,"abstract":"Which households are most affected by energy price shocks? How do interventions in energy markets affect these patterns? To investigate these questions, this paper introduces a measurement framework that leverages granular property-level data representing more than 50% of the English and Welsh housing stock. This framework will form the basis for current and future studies on the heterogeneous effects of the energy crisis more broadly. We find that the energy price shock has a more pronounced effect on relatively more affluent areas where energy use is higher at baseline. We document that commonly used untargeted interventions in energy markets significantly weaken market price signals for able-to-pay households. Alternative, more targeted policies are cheaper, easily implementable, and could better align energy saving incentives.","PeriodicalId":47772,"journal":{"name":"Economic Policy","volume":"37 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141568306","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Matias Berthelon, Diana Kruger, Catalina Lauer, Luca Tiberti, Carlos Zamora
Better employment quality can improve personal well-being, social cohesion, and inclusive growth and development. Yet good quality jobs—associated with greater well-being—are less accessible to women than men. While it is understood that policies balancing family and work lead to greater female labor participation, this paper investigates whether one such policy—increased childcare—improves the quality of jobs where mothers are employed. The context we analyze is a nationwide school reform in Chile that extended school schedules for primary school-aged children, providing childcare services. We combine administrative data of the phase-in of the policy with panel data of individual mothers’ employment outcomes and socio-economic characteristics. We estimate a fixed-effects model that controls for mothers’ unobserved heterogeneity and identifies the effect of the policy from plausibly exogenous temporal and spatial variations in access to schools with long schedules and exogenous exposure to the policy. We find a positive effect of childcare on several measures of employment quality and gender gaps within the couple. Our evidence suggests that the mechanism driving the impact is the implicit subsidy to the cost of childcare, affecting the opportunity cost of mothers’ time. In addition, we find heterogeneous results by mothers’ education level. Access to childcare through longer primary school schedules can increase household welfare and can play a role in reducing income and gender inequalities.
{"title":"Longer School Schedules, Childcare and the Quality of Mothers’ Employment","authors":"Matias Berthelon, Diana Kruger, Catalina Lauer, Luca Tiberti, Carlos Zamora","doi":"10.1093/epolic/eiae037","DOIUrl":"https://doi.org/10.1093/epolic/eiae037","url":null,"abstract":"Better employment quality can improve personal well-being, social cohesion, and inclusive growth and development. Yet good quality jobs—associated with greater well-being—are less accessible to women than men. While it is understood that policies balancing family and work lead to greater female labor participation, this paper investigates whether one such policy—increased childcare—improves the quality of jobs where mothers are employed. The context we analyze is a nationwide school reform in Chile that extended school schedules for primary school-aged children, providing childcare services. We combine administrative data of the phase-in of the policy with panel data of individual mothers’ employment outcomes and socio-economic characteristics. We estimate a fixed-effects model that controls for mothers’ unobserved heterogeneity and identifies the effect of the policy from plausibly exogenous temporal and spatial variations in access to schools with long schedules and exogenous exposure to the policy. We find a positive effect of childcare on several measures of employment quality and gender gaps within the couple. Our evidence suggests that the mechanism driving the impact is the implicit subsidy to the cost of childcare, affecting the opportunity cost of mothers’ time. In addition, we find heterogeneous results by mothers’ education level. Access to childcare through longer primary school schedules can increase household welfare and can play a role in reducing income and gender inequalities.","PeriodicalId":47772,"journal":{"name":"Economic Policy","volume":"66 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-07-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141568369","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Natalia Danzer, Sebastian Garcia-Torres, Max Steinhardt, Luca Stella
This study explores the relationship between women’s representation in political power and school closures during the COVID-19 pandemic. Using a cross-country dataset in Europe, we document a striking negative relationship between the share of female members in national governments and school closures. We show that a one standard deviation increase in female members of national governments is associated with a significant reduction in the likelihood of school lockdowns by 24% relative to the average share of school closures. This result is robust to an extensive set of sensitivity checks. We attribute this pattern to a higher awareness of female politicians about the potential costs that school closures imply for families, in particular working mothers with young children.
{"title":"Women in Political Power and School Closure During Covid Times","authors":"Natalia Danzer, Sebastian Garcia-Torres, Max Steinhardt, Luca Stella","doi":"10.1093/epolic/eiae033","DOIUrl":"https://doi.org/10.1093/epolic/eiae033","url":null,"abstract":"This study explores the relationship between women’s representation in political power and school closures during the COVID-19 pandemic. Using a cross-country dataset in Europe, we document a striking negative relationship between the share of female members in national governments and school closures. We show that a one standard deviation increase in female members of national governments is associated with a significant reduction in the likelihood of school lockdowns by 24% relative to the average share of school closures. This result is robust to an extensive set of sensitivity checks. We attribute this pattern to a higher awareness of female politicians about the potential costs that school closures imply for families, in particular working mothers with young children.","PeriodicalId":47772,"journal":{"name":"Economic Policy","volume":"18 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141501473","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A large share of the gender wage gap can be attributed to occupation and employer choices. If workers are not well informed about these pay differences, increasing wage transparency might alleviate the gender gap. We test this hypothesis by examining the impact of mandatory wage postings. In 2011, Austria introduced a policy that requires firms to provide a minimum wage offer in job postings. To compare the pay prospects of vacancies before and after the introduction, we predict posted wages using detailed occupation-firm cells, which explain about 75 percent of the variation in wage postings. While we estimate a substantial gender gap of 15 log points, mandatory wage postings do not affect gender sorting into better-paying occupations and firms.
{"title":"Can Wage Transparency Alleviate Gender Sorting in the Labor Market?","authors":"Omar Bamieh, Lennart Ziegler","doi":"10.1093/epolic/eiae025","DOIUrl":"https://doi.org/10.1093/epolic/eiae025","url":null,"abstract":"A large share of the gender wage gap can be attributed to occupation and employer choices. If workers are not well informed about these pay differences, increasing wage transparency might alleviate the gender gap. We test this hypothesis by examining the impact of mandatory wage postings. In 2011, Austria introduced a policy that requires firms to provide a minimum wage offer in job postings. To compare the pay prospects of vacancies before and after the introduction, we predict posted wages using detailed occupation-firm cells, which explain about 75 percent of the variation in wage postings. While we estimate a substantial gender gap of 15 log points, mandatory wage postings do not affect gender sorting into better-paying occupations and firms.","PeriodicalId":47772,"journal":{"name":"Economic Policy","volume":"2015 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-04-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140798823","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Francesco Amodio, Leonardo Baccini, Giorgio Chiovelli, Michele Di Maio
This paper investigates the impact of agricultural trade liberalization on economic activity and political violence in emerging countries. We use data on all Preferential Trade Agreements (PTAs) signed between 25 low- and middle-income countries and their high-income trade partners between 1995 and 2013. We exploit the implied reduction in agricultural tariffs over time combined with variation within countries in their suitability to produce liberalized crops to find that economic activity increases differentially in affected areas. We also find strong positive effects on political violence, and present evidence consistent with both producer- and consumer-side mechanisms: violence increases differentially in more urbanized areas that are suitable to produce less labor-intensive crops as well as crops that are consumed locally. Our estimates imply that economic activity and political violence would have been around 2% and 7% lower, respectively, across countries in our sample had the PTAs not been signed.
{"title":"Trade Liberalization, Economic Activity, and Political Violence in the Global South: Evidence from PTAs","authors":"Francesco Amodio, Leonardo Baccini, Giorgio Chiovelli, Michele Di Maio","doi":"10.1093/epolic/eiae024","DOIUrl":"https://doi.org/10.1093/epolic/eiae024","url":null,"abstract":"This paper investigates the impact of agricultural trade liberalization on economic activity and political violence in emerging countries. We use data on all Preferential Trade Agreements (PTAs) signed between 25 low- and middle-income countries and their high-income trade partners between 1995 and 2013. We exploit the implied reduction in agricultural tariffs over time combined with variation within countries in their suitability to produce liberalized crops to find that economic activity increases differentially in affected areas. We also find strong positive effects on political violence, and present evidence consistent with both producer- and consumer-side mechanisms: violence increases differentially in more urbanized areas that are suitable to produce less labor-intensive crops as well as crops that are consumed locally. Our estimates imply that economic activity and political violence would have been around 2% and 7% lower, respectively, across countries in our sample had the PTAs not been signed.","PeriodicalId":47772,"journal":{"name":"Economic Policy","volume":"30 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-03-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140197946","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Eduard Suari-Andreu, Rob J M Alessie, Viola Angelini, Raun van Ooijen
In this study we examine the importance of estate planning and inter-vivos transfers towards the end of life. To that end, we use administrative data on all deaths taking place in the Netherlands between 2006 and 2013. We link these to wealth and income tax records and the hospital discharge register. Employing these unique data we distinguish between sudden and non-sudden deaths and study how they compare in terms of wealth at death. Our results show that non-sudden deaths are associated with significantly less financial wealth at the time of death. We interpret this difference as the result of inter-vivos transfers that result from estate planning towards the end of life. We find significant effects not only at the top of the wealth distribution but along the entire upper half of the distribution. Diseases with a relatively low survival rate that do not affect cognitive abilities appear as the most likely to trigger estate planning. These results have important implication for gift and inheritance tax schedules that allow for tax avoidance via exemptions and the progressivity of the tax rate.
{"title":"Giving with a warm hand: Evidence on estate planning and Inter-Vivos transfers","authors":"Eduard Suari-Andreu, Rob J M Alessie, Viola Angelini, Raun van Ooijen","doi":"10.1093/epolic/eiae023","DOIUrl":"https://doi.org/10.1093/epolic/eiae023","url":null,"abstract":"In this study we examine the importance of estate planning and inter-vivos transfers towards the end of life. To that end, we use administrative data on all deaths taking place in the Netherlands between 2006 and 2013. We link these to wealth and income tax records and the hospital discharge register. Employing these unique data we distinguish between sudden and non-sudden deaths and study how they compare in terms of wealth at death. Our results show that non-sudden deaths are associated with significantly less financial wealth at the time of death. We interpret this difference as the result of inter-vivos transfers that result from estate planning towards the end of life. We find significant effects not only at the top of the wealth distribution but along the entire upper half of the distribution. Diseases with a relatively low survival rate that do not affect cognitive abilities appear as the most likely to trigger estate planning. These results have important implication for gift and inheritance tax schedules that allow for tax avoidance via exemptions and the progressivity of the tax rate.","PeriodicalId":47772,"journal":{"name":"Economic Policy","volume":"2013 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2024-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140153845","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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