Saving in the Twenty First Century
Population and labor force growth are expected to approach zero in the first half of the next century and this will tend to reduce further an already unsatisfactory level of aggregate saving. This paper investigates the determinants of aggregate saving under these demographic assumptions, with particular emphasis on workers’ strategies for dealing with the risk of outliving their resources after retirement. The permanent income and life cycle models represent different strategies for addressing this risk and are found to differ substantially in their implications for savings. Aggregate saving is found to be unfavorably affected by taxes on labor income, while the effect of taxes on property income is ambiguous. Public and private pension plans have a negative aggregate impact, even though employer plus employee contributions fully support workers’ post retirement benefits. Inheritance taxes have no effect in the cases considered.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: 3254 Steinberg Hall-Dietrich Hall, Philadelphia, PA 19104-6367|
Phone: (215) 898-7616
Fax: (215) 573-8084
Web page: http://finance.wharton.upenn.edu/~rlwctr/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:fth:pennfi:18-89. 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: (Thomas Krichel)
If references are entirely missing, you can add them using this form.