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Public Policy and Saving in the United States and Canada

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  • John Sabelhaus
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    Abstract

    Canadians have largely unrestricted access to tax-preferred saving through the Registered Retirement Saving Plan (RRSP) programs. No comparable program exists in the United States. Previous research has noted that household saving in Canada grew relative to saving in the United States after the RRSP program was initiated, suggesting that a program like the RRSP can increase saving. This paper shows that the difference in household saving in the United States and in Canada is more plausibly characterized as a simple life-cycle response to differences in the overall intertemporal income reallocation built into tax and public pension systems, rather than as a response to RRSP availability.

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    Bibliographic Info

    Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

    Volume (Year): 30 (1997)
    Issue (Month): 2 (May)
    Pages: 253-75

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    Handle: RePEc:cje:issued:v:30:y:1997:i:2:p:253-75

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    Cited by:
    1. B. Douglas Bernheim, 1999. "Taxation and Saving," Working Papers 99007, Stanford University, Department of Economics.
    2. Benczúr, Péter, 2007. "Az adókulcsok hatása a különböző gazdasági szereplők viselkedésére - irodalmi összefoglaló
      [The effect of tax rates on the behaviour of various economic actors. A review of the literatu
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 125-141.
    3. Samwick, Andrew A., 1998. "Tax Reform and Target Saving," National Tax Journal, National Tax Association, vol. 51(n. 3), pages 621-35, September.
    4. Engen, Eric & Gale, William & Uccello, Cori, 1999. "The Adequacy of Household Saving," MPRA Paper 56442, University Library of Munich, Germany.
    5. Doh-Khul Kim & Hyungsoo Kim, 2006. "Aging and Savings in Korea: A Time-Series Approach," International Advances in Economic Research, Springer, vol. 12(3), pages 374-381, August.

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