Real Estate Prices and the Importance of Bequest Taxation

In the context of a general equilibrium model with overlapping generations and intergenerational altruism we show that, ceteris paribus, a decrease in taxes on inter vivos donations and bequests brings about an increase in real estate prices. This result has relevant policy implications. We test the predictions of our theory exploiting the abolition of bequest and donation taxation that took place in Italy in 2001. We implement this test by using an original and unique dataset on sales, donations and real estate prices for 13 italian cities between 1993 and 2004. Our estimates suggest that, controlling for other explanatory variables, the 2001 abolition of taxation on bequests and donations contributed substantially to the appreciation of Italian residential real estate.bequest tax; donations; real estate

Real estate prices and the importance of bequest taxation

Taxation of bequests and donations is an important determinant of real estate prices. We show that, ceteris paribus, a decrease in taxes on inter vivos donations and bequests brings about an increase in real estate prices. We provide a general equilibrium rationalization in the context of OLG economies featuring intergenerational altruism. This has relevant policy implications. We test the predictions of our theory employing a unique policy shock: the abolition of bequest and donation taxation that took place in Italy in 2001. Considering this policy shift provides the first evidence that a drastic reduction in bequest and donation taxation significantly increased real estate prices. Our estimates suggest that the 2001 abolition of taxation on bequests and donations alone led to an appreciation of residential real estate in excess of 10%

Assessing competitiveness: how firm-level data can help

As policymakers refocus on growth, the ability to take a firm-level view is key to disentangling the various factors at the root of competitiveness, and thus to designing appropriate policies. â?¢ Firm-level data provides critical information for the design of appropriate competitiveness measures that complement traditional macro analysis. â?¢ More work remains to be done assembling firm-level information, but the variance of the distribution of firm characteristics already conveys important information in addition to standard averages. â?¢ New indicators should be developed to translate the distribution of firm characteristics into indicators of competitiveness designed to capture not only average performance but also the heterogeneity of firm performance. This Policy Contribution builds on ongoing research within EFIGE (www.efige.org), a project to help identify the internal policies needed to improve the external competitiveness of the European Union.

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

We identify the degree of intergenerational altruism in an OLG framework à la Barro exploiting the quasi-experimental variation generated by reforms of bequest taxation (estate or inheritance tax, in the U.S.) and taxes on inter vivos real estate donations (gift tax, in the U.S.) that were enacted in Italy between 2000 and 2001. Employing a unique data set containing information on the housing stock and house prices in 13 large Italian cities between 1993 and 2004, we identify the structural parameter of interest via the effect of changes in the tax rate on house prices. We find that the intergenerational altruism parameter is about 20%. Given the possible anticipation of the reform this estimate should be interpreted as a lower bound

Evolving role of PET/CT with different tracers in the evaluation of pulmonary neuroendocrine tumours

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Swords and Plowshares: Regional Trade Agreements and Political Conflict in Africa

The end of the Cold War and the apparent stability of the contemporary international system, in which the probability of a major war is at its lowest for centuries, have spurred a lively debate on the causes of peace. One of the most popular explanations is based on the classic liberal statement that economic interdependence reduces political conflict. Globalisation, narrowly defined as the increase in the quantity and quality of international economic exchanges experienced in the last few years, would then be one of the main reasons for international political stability. Even at the regional level, therefore, the increase in economic intercourse should bring, as a welcome political externality, the amelioration of international conflict. This view posits, for instance, that the emergence of a «zone of peace» within Western Europe has been brought about by the creation of a common market which has created a powerful incentive to avoid political conflict. Or that in other areas, such as Latin America, the recent increase in regional stability would rest on the launch of Mercosur and the greater interdependence that it has brought about. The hypothesis is that Regional Trade Agreements (RTAs) facilitate economic interdependence, which in turn facilitate political stability. In this paper we apply this hypothesis to the African case where a significant number of RTAs has been created in the last decades. Expectations of increased political stability have not, however, been confirmed. This does not necessarily undermine the general proposition of a positive correlation between interdependence and peace, but it does suggest that the relationship between the two elements may be more complicated than often acknowledged. On the one hand, African RTAs may simply not have produced the necessary level of trade and investment for a significant modification of political preferences. On the other hand, interdependence may be a necessary condition for peace, but it may also be insufficient, as its full impact on political preferences may require specific domestic institutions

Multi-phase outflows in Mkn 848 observed with SDSS-MaNGA Integral Field Spectroscopy

The characterisation of galaxy-scale outflows in terms of their multi-phase nature, amount, and effects of flowing material is crucial to place constraints on models of galaxy evolution. This study can proceed only with the detailed investigation of individual targets. We present a spatially resolved spectroscopic optical data analysis of Mkn 848, a complex system consisting of two merging galaxies at z~0.04 that are separated 7.5 kpc (projected distance). Motivated by the presence of a multi-phase outflow in the north-west system revealed by the SDSS integrated spectrum, we analysed the publicly available MaNGA data, which cover almost the entire merging system, to study the physical properties of cool and warm gas in detail. Galaxy-wide outflowing gas in multiple phases is revealed for the first time in the two merging galaxies. We also detect spatially resolved resonant NaID emission associated with the outflows. The derived outflow energetics may be consistent with a scenario in which both winds are accelerated by stellar processes and AGN activity, although we favour an AGN origin given the high outflow velocities and the ionisation conditions observed in the outflow regions. Deeper observations are required, however, to better constrain the nature of these multi-phase outflows. Outflow energetics in the north-west system are strongly different between the ionised and atomic gas components, the latter of which is associated with mass outflow rate and kinetic and momentum powers that are 1-2 dex higher; those associated with the south-east galaxy are instead similar. Strong kp-scale outflows are revealed in an ongoing merger system, suggesting that feedback can potentially impact the host galaxy even in the early merger phases. The characterisation of the neutral and ionised gas phases has proved to be crucial for a comprehensive study of the outflow phenomena.Comment: 19 pages, 14 figures, accepted for publication in A&