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).
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- 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).
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"Marshall or Jacobs? Answers to an unsuitable question from an interaction model,"
ERSA conference papers
ersa12p373, European Regional Science Association.
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- L. Eeckhoudt & H. Schlesinger, 2008. "Changes in risk and the demand for saving," Post-Print hal-00326101, HAL.
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