Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/268920 
Year of Publication: 
2022
Series/Report no.: 
CEBI Working Paper Series No. 17/22
Publisher: 
University of Copenhagen, Department of Economics, Center for Economic Behavior and Inequality (CEBI), Copenhagen
Abstract: 
We exploit exogenous variation from a pension reform in Denmark to estimate the effect of tax subsidies on total private saving. We present new evidence on individuals in the middle of the income distribution and show that a reduction in tax subsidies for retirement saving reduces total private saving. The reform changed the tax incentives for saving in the pension scheme that holds the highest tax advantage for middle-income workers in Denmark. We find that for each unit of reduced saving in this pension scheme, only 63 percent is substituted to other types of saving.
Subjects: 
Crowd-out
Savings
Retirement
Tax incentives
Household finance
JEL: 
H24
H31
D14
G51
Document Type: 
Working Paper

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