Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/189930
Authors: 
van Santen, Peter
Year of Publication: 
2016
Series/Report no.: 
Sveriges Riksbank Working Paper Series No. 330
Abstract: 
This paper investigates the relationship between household saving and pensions, and estimates both the displacement effect of pensions on private saving and the precautionary saving effect due to uncertainty in pension income. I estimate the savings equation derived from a lifecycle model featuring income uncertainty using survey data for Dutch households, with subjective expectations on pension benefits and uncertainty. Exploiting exogenous variation due to pension fund performance, I find that households save significantly more due to uncertainty in pension income. Not controlling for uncertainty biases the estimated displacement effect of pensions on private savings towards zero.
Subjects: 
Precautionary saving
Displacement effect
Subjective expectations
JEL: 
D91
H55
J26
Document Type: 
Working Paper

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