Gomes, Francisco, Michaelides, Alexander and Polkovnichenko, Valery (2009) Optimal savings with taxable and tax-deferred accounts. Review of Economic Dynamics, 12 (4). pp. 718-735. ISSN 1094-2025
Full text not available from this repository.Abstract
We solve and estimate a life-cycle model with earnings risk and liquidity constraints in the presence of tax-deferred retirement accounts (TDAs). We explicitly consider two very different types of households (with TDAs): direct and indirect stockholders. The latter hold stocks only through TDAs and, consistent with the data, save considerably less than the former, who hold stocks both inside and outside these accounts. We find that TDAs promote higher wealth accumulation but only marginally higher net savings. Consumption increases mostly during retirement, as desired, but the effect is largest for those households with higher savings rates already.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.elsevier.com/wps/find/journaldescriptio... |
| Additional Information: | © 2009 Elsevier Inc. |
| Divisions: | Financial Markets Group Economics |
| Subjects: | H Social Sciences > HG Finance H Social Sciences > HB Economic Theory |
| JEL classification: | H - Public Economics > H2 - Taxation, Subsidies, and Revenue E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E21 - Macroeconomics: Consumption; Saving; Aggregate Physical and Financial Consumer Wealth |
| Date Deposited: | 14 Apr 2010 10:53 |
| Last Modified: | 05 Nov 2024 21:33 |
| URI: | http://eprints.lse.ac.uk/id/eprint/27728 |
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