Tax Subsidies and Household Saving: Evidence from Canada
AbstractTargeted tax-based saving incentives can be a powerful tool for promoting household and national saving. This study examines the effect of the cancellation of the Registered Home Ownership Savings Plan, a Canadian tax-subsidized saving program, on household saving. The cancellation provides exogenous variation in eligibility for the subsidy that is uncorrelated with household-specific heterogeneity in saving behavior. The empirical analysis suggests that the subsidy had a substantial impact on saving: each dollar contributed to the program represented 56-93 and 20-67 cents of new household and national saving, respectively. Copyright 1996, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by MIT Press in its journal Quarterly Journal of Economics.
Volume (Year): 111 (1996)
Issue (Month): 4 (November)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- James M. Poterba & Steven F. Venti & David A. Wise, 1996. "How Retirement Saving Programs Increase Saving," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 91-112, Fall.
- Mills, Gregory & Gale, William G. & Patterson, Rhiannon & Engelhardt, Gary V. & Eriksen, Michael D. & Apostolov, Emil, 2008. "Effects of individual development accounts on asset purchases and saving behavior: Evidence from a controlled experiment," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1509-1530, June.
- Nuno C. Martins & Ernesto Villanueva, 2003.
"The Impact of Interest-rate Subsidies on Long-term Household Debt: Evidence from a Large Program,"
w200314, Banco de Portugal, Economics and Research Department.
- Nuno C. Martins & Ernesto Villanueva, 2003. "The impact of interest-rate subsidies on long-term household debt: Evidence from a large program," Economics Working Papers 713, Department of Economics and Business, Universitat Pompeu Fabra.
- Nuno Martins & Ernesto Villanueva, 2005. "The impact of interest-rate subsidies on long-term household debt: evidence from a large program," DNB Working Papers 026, Netherlands Central Bank, Research Department.
- Engelhardt, Gary V. & Madrian, Brigitte C., 2004.
"Employee Stock Purchase Plans,"
National Tax Journal,
National Tax Association, vol. 57(2), pages 385-406, June Cita.
- Sule Alan & Kadir Atalay & Thomas F. Crossley, 2006.
"Do the Rich Save More in Canada?,"
Social and Economic Dimensions of an Aging Population Research Papers
153, McMaster University.
- Sule Alan & Kadir Atalay & Thomas F. Crossley, 2006. "Do the Rich Save More in Canada?," Quantitative Studies in Economics and Population Research Reports 406, McMaster University.
- Sule Alan & Kadir Atalay & Thomas F. Crossley, 2013. "Do the Rich Save More in Canada?," KoÃ§ University-TUSIAD Economic Research Forum Working Papers 1312, Koc University-TUSIAD Economic Research Forum.
- Bernheim, B. Douglas, 2002.
"Taxation and saving,"
Handbook of Public Economics,
in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 18, pages 1173-1249
- Broadbent, Ben & Kremer, Michael, 2001. "Does favorable tax-treatment of housing reduce non-housing investment?," Journal of Public Economics, Elsevier, vol. 81(3), pages 369-391, September.
- Dietz, Robert D. & Haurin, Donald R., 2003. "The social and private micro-level consequences of homeownership," Journal of Urban Economics, Elsevier, vol. 54(3), pages 401-450, November.
- Marsha J. Courchane & Judith A. Giles, 2002. "A Comparison of U.S. and Canadian Residential Mortgage Markets," Econometrics Working Papers 0201, Department of Economics, University of Victoria.
- Schlüter, Tobias & Sievers, Sönke & Hartmann-Wendels, Thomas, 2012. "How can banks effectively stabilize their retail customers saving behavior? The impact of contractual rewards on saving persistence and cash flow volatility," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62057, Verein für Socialpolitik / German Economic Association.
- Mark Schreiner, 2001. "Match Rates and Savings: Evidence from Individual Development Accounts," Microeconomics 0108003, EconWPA, revised 27 Dec 2001.
- Engelhardt, Gary V. & Eriksen, Michael D. & Gale, William G. & Mills, Gregory B., 2010. "What are the social benefits of homeownership? Experimental evidence for low-income households," Journal of Urban Economics, Elsevier, vol. 67(3), pages 249-258, May.
- Gary V. Engelhardt, 2000. "Have 401(k)s Raised Household Saving? Evidence from the Health and Retirement Study," Social and Economic Dimensions of an Aging Population Research Papers 33, McMaster University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.