Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81875
Authors: 
Alessie, Rob
Angelini, Viola
van Santen, Peter
Year of Publication: 
2013
Series/Report no.: 
Sveriges Riksbank Working Paper Series 265
Abstract: 
We use recently collected retrospective survey data to estimate the displacement effect of pension wealth on household savings. The third wave of the Survey of Health, Ageing and Retirement in Europe, SHARELIFE, collects information on the entire job history of the respondent, a feature missing in most previous studies. We show that addressing measurement error problems is crucial to estimate the displacement effect when using survey data. We find that each euro of pension wealth is associated with a 47 (61) cent decline in non-pension wealth using robust (median) regression. In the presence of biases from measurement errors and omitted (unobserved) variables, we estimate a lower bound to the true offset between 17% and 30%, significantly different from zero. Instrumental variables regression estimates, although less precise, suggest full displacement.
Subjects: 
Displacement effect
Lifetime income
Retrospective survey
Measurement error
JEL: 
D91
H55
D31
Document Type: 
Working Paper

Files in This Item:
File
Size
400.43 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.