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Factors Affecting Saving, Policy tools, and Tax Reform: A Review
Author:
International Monetary Fund
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Series:
IMF Working Papers
Volume/Issue:
Volume 1989: Issue 047
Language:
English
Publication Date:
01 Jan 1989
DOI:
https://doi.org/10.5089/9781451972757.001
ISBN:
9781451972757
ISSN:
1018-5941
Pages:
76
Keywords:
WP; saving rate; private saving; income tax; tax system; capital formation; consumer durables; open economy; standard of living; substitution effect; tax burden; personal income; household saving; tax treatment; Private savings; Consumption; Income; Personal income; Northern Europe
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper reviews the literature on factors which affect saving and capital formation in industrialized countries. Problems of measurement are briefly examined. Evidence of the effect on the rate of saving of real rates of return, income redistribution, allocation of saving between corporations and individuals, growth of public and private pension plans, tax incentives, and many other factors ranging from the bequest motive to energy prices and inflation, is considered. Given this evidence, the limited tools available to policymakers to affect savings are discussed. Finally, the extent to which recent tax reforms in a number of countries appear to have been affected by the desire to increase saving is reviewed.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund