Taxation and the household saving rate: evidence from OECD countries
DOI:
https://doi.org/10.13133/2037-3643/10345Keywords:
Consumption, Revenue, Saving, Tax, Taxation, TaxesAbstract
This paper analyzes anew the relationship between taxation and the household saving rate. On the basis of standard savings and tax revenue data from a sample of OECD countries, it provides compelling empirical evidence of a powerful impact of taxes on household savings. In particular, income taxes are shown to affect negatively the household saving rate much more than consumption taxes.
JEL Codes: E21, H24, H31
References
ATKINSON, A.B. and J.E. STIGLITZ (1980), Lectures on Public Economics, McGraw-Hill, New York.
BERNHETM, B.D. (1997), "Rethinking saving incentives", in A.J. Auerbach ed., Fiscal Policy, The MIT Press, Cambridge, Mass., pp. 259-309.
BHARGAVA, A., L. FRANZINI and W. NARENDRANATHAN (1982), "Serial correlation and the fixed effects model", Review of Economic Studies, vol. 49, pp. 533-49.
BOADWAY, R. and D. WILDASIN (1994), "Taxation and savings: a survey", Fiscal Studies, vol. 15, pp. 19-63.
GRAHAM, J.W. (1987), "International differences in saving rates and the life cycle hypothesis", European Economic Review, vol. 31, pp. 1509-29.
MASSON, P.R., T. BAYOUMI and H. SAMIEI (1998), "International evidence on the de terminants of private saving", The World Bank Economic Review, vol. 12, pp. 483-501.
OECD (1994), Taxation and Household Saving, Paris.
OECD (1999), Analytical Database, Paris.
OECD (1999), Revenue Statistics, Paris.
TANZI, V. and H.H. ZEE (1997), "Fiscal policy and long-run growth", IMF Staff Papers, vol. 44, pp. 179-209.
UNITED NATIONS (1996), World Population Prospects: The 1996 Revision, New York.
Downloads
How to Cite
Issue
Section
License
