01788cas a2200241 a 4500 AALejournalIMF001619 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451852028 1018-5941 BD-DhAAL BD-DhAAL Lueth, Erik. Can Inheritances Alleviate the Demographic Burden? / Erik Lueth. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students With pay-as-you-go schemes in place, population aging will impose a heavy fiscal burden on young and future cohorts. However, these cohorts may also profit from larger inheritances as the number of heirs declines. The aim of this paper is to explore the compensating potential of private intergenerational transfers. A dynamic, computable general equilibrium model is employed allowing for a pay-as-you-go scheme, various bequest motives, and an endogenous labor supply. The findings are twofold. First, the increase in future generations' inheritances is insufficient to make up for the demographic burden. Second, increasing the inheritance tax during the demographic transition may alleviate the fiscal burden of future generations by improving overall efficiency. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2001/097 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/097/001.2001.issue-097-en.xml IMF e-Library