NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Tax Policy, the Rate of Return, and Savings

Lawrence H. Summers

NBER Working Paper No. 995
Issued in September 1982
NBER Program(s):   EFG   PE

The theoretical and empirical results in this paper make a strong prima facie case for the proposition that increases in the after tax rate of return caused by tax policy are likely to bring forth significant increases in saving. Theoretical analysis using a variety of standard models tends to suggest that the aggregate response to savings incentives is likely to be substantial. It is argued that the existing empirical evidence sheds little light on the question. Empirical analyses are then conducted using three alternative approaches. All three confirm the hypothesis of a significant positive response of savings to changes in the rate of return.

download in pdf format
   (353 K)

email paper

This paper is available as PDF (353 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w0995

Published: Summers, Lawrence H. "The After-Tax Rate Of Return Affects Private Savings," American Economic Review, 1984, v74(2), 249-253.

Users who downloaded this paper also downloaded these:
Summers w1351 The After Tax Rate of Return Affects Private Savings
Boskin w0135 Taxation, Saving and the Rate of Interest
Hall w0720 Intertemporal Substitution in Consumption
Attanasio and Weber w15756 Consumption and Saving: Models of Intertemporal Allocation and Their Implications for Public Policy
King w0428 Savings and Taxation
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us