TY  - JOUR
AU  - Bernheim,B. Douglas
TI  - Taxation and Saving
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7061
PY  - 1999
Y2  - March 1999
UR  - http://www.nber.org/papers/w7061
L1  - http://www.nber.org/papers/w7061.pdf
N1  - Author contact info:
B. Douglas Bernheim
Department of Economics
Stanford University
Stanford, CA 94305-6072
Tel: 650/725-8732
Fax: 650/725-5702
E-Mail: bernheim@stanford.edu
AB  - In this survey, I summarize and evaluate the extant literature concerning taxation and personal saving. I describe the theoretical models that economists have used to depict saving decisions, and I explore the positive and normative implications of these models. The central positive question is whether and to what extent specific public policies raise or lower the rate of saving.  The central normative question is whether and to what extent it is desirable to tax the economic returns to saving.  I also examine empirical evidence on the saving effects of various tax policies.  This evidence includes econometric studies of the generic relation between saving and the after-tax rate of return, as well as analyses of responses to the economic incentives that are imbedded in tax-deferred retirement accounts.  Finally, I also discuss several indirect channels through which tax policy may affect household saving by altering the behavior of third parties, such as employers.
ER  -