TY  - JOUR
AU  - Boskin,Michael J.
TI  - Taxation, Saving and the Rate of Interest
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 135
PY  - 1976
Y2  - April 1976
UR  - http://www.nber.org/papers/w0135
L1  - http://www.nber.org/papers/w0135.pdf
N1  - Author contact info:
Michael J. Boskin
Hoover Institution
Stanford University
434 Galvez Mall
Stanford, CA 94305-6010
Tel: 650/723-6482
Fax: 650/723-6494
E-Mail: boskin@stanford.edu
AB  - After exploring both the crucial role of the interest elasticity of the saving rate in the analysis of a wide variety of issues in economic - particularly tax - policy and reasons why previous studies of the effect of interest rates on consumption and saving have biased the estimated elasticity toward zero, this study presents new estimates of consumption functions based on aggregate U.S. time series data. The results are striking: a variety of functional forms, estimation methods and definitions of the real after-tax rate of return invariably lead to the conclusion of a substantial interest elasticity of saving.
ER  -