Income Risk, Saving and Taxation:Will Precautionary Saving Survive?
Former theoretical and empirical studies find that precautionary savings are reduced inthe presence of social security systems. The saving motive, however, does not change:individuals respond to increasing income risk by increasing their savings. Although thisstill holds for common tax and transfer systems, we show that this is not a feature of alltax and transfers systems. In contrast to former studies, we focus on the impact of thevariability of future income (higher degree risk).
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eeckhoudt, Louis & Schlesinger, Harris, 2008.
"Changes in risk and the demand for saving,"
Journal of Monetary Economics,
Elsevier, vol. 55(7), pages 1329-1336, October.
- Louis Eeckhoudt & Harris Schlesinger, 2008. "Changes in Risk and the Demand for Saving," CESifo Working Paper Series 2388, CESifo Group Munich.
- EECKHOUDT, Louis & SCHLESINGER, Harris, . "Changes in risk and the demand for saving," CORE Discussion Papers RP -2100, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jan Kluge & Robert Lehmann, 2012.
"Marshall or Jacobs? Answers to an unsuitable question from an interaction model,"
Ifo Working Paper Series
ifo Working Paper No. 124, Ifo Institute for Economic Research at the University of Munich.
- Robert Lehmann & Jan Kluge, 2012. "Marshall or Jacobs? Answers to an unsuitable question from an interaction model," ERSA conference papers ersa12p373, European Regional Science Association.
- Yitzhaki, Shlomo, 1982. "Stochastic Dominance, Mean Variance, and Gini's Mean Difference," American Economic Review, American Economic Association, vol. 72(1), pages 178-85, March.
When requesting a correction, please mention this item's handle: RePEc:ces:ifowps:_125. 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: (Julio Saavedra)
If references are entirely missing, you can add them using this form.