IDEAS home Printed from
   My bibliography  Save this article

The Effect of the Current Ira Program on Federal Debt


  • Frank Caliendo
  • W. Cris Lewis


This article analyzes the long-term impact of the current individual retirement account (IRA) program on government debt. The initial work on this subject was conducted by Feldstein (1995), who argued that the traditional IRA has a favorable long-term effect on government debt. Yet, absent from the literature is any formal extension of Feldstein’s model to include the Roth IRA. Using modeling techniques similar to Feldstein, the Roth IRA is shown to have a negative long-term effect on government debt. The model includes personal and corporate tax revenue collections, the cost of government debt, the source of Roth IRA saving, the payment source of the taxes paid on Roth contributions, and optimal investment strategies. Aconceptual, newtype of IRA is proposed as a replacement for the Roth IRA.

Suggested Citation

  • Frank Caliendo & W. Cris Lewis, 2004. "The Effect of the Current Ira Program on Federal Debt," Public Finance Review, , vol. 32(3), pages 331-351, May.
  • Handle: RePEc:sae:pubfin:v:32:y:2004:i:3:p:331-351

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:32:y:2004:i:3:p:331-351. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.