Pension wealth and household savings
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Pension wealth and household savings tests of robustness by Louis Dicks-Mireaux

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Published by University of Warwick, Department of Economics in Warwick .
Written in English


Book details:

Edition Notes

Statementby Louis Dicks-Mireau and Mervyn King.
ContributionsKing, Mervyn A.
ID Numbers
Open LibraryOL20672714M

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  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 that estimate the displacement by: Pension Wealth and Household Savings: Tests of Robustness 1. Introduction There is, by now, a substantial literature on the impact of pension schemes, both public and private, on the level of household savings.' Feldstein's () time—series study of the impact of social security wealth. saving rate is about 2 percent. The average age of the household head is about. 48 years (“treated” household heads are on average 46 years old and. “comparison” household heads . Once every three years, the Board of Governors of the Federal Reserve System collects data on household assets and liabilities through the Survey of Consumer Finances (SCF). The most recent such survey was conducted in , and the survey results were released to the public in February

The Effect of Public Pension Wealth on Saving and Expenditure. Marta Lachowska. W.E. Upjohn Institute. and Stockholm University A key difficulty in estimating the relationship between pension wealth and household saving lies in how to account for unobserved traits influence saving The Effect of Public Pension Wealth on Saving and. On the other hand, the relationship between pension wealth and household saving is inconclusive in the literature. The life-cycle model predicts that an increase in future pension wealth will be offset by a decline in individuals’ by:   Britain's total household wealth surges to nearly £15TRILLION as money stashed in private pensions grows and house prices rise Britain's total household net wealth . the relationship between public pension wealth and household saving empirically. His study, based on the time series behaviour of aggregate saving rates and pension wealth indicates a large negative effect of pension wealth on saving rates. Subsequently, King and Dicks-.

effect of pension wealth on private saving by using the cohort-by-time variation in pension wealth that is explained by the reform. We find that one additional Polish zloty, or PLN, of pension wealth crowds out about PLN in household saving, while one additional PLN of pension wealth crowds in about PLN in household consumption. The main parameter of interest is β 2, which measures the extent of displacement between discretionary household wealth and pension wealth. The canonical life-cycle model sketched above predicts full displacement (β 2 = − 1) and β 1 = 1. However, the extent of displacement might be smaller because of factors which are not considered in the canonical model such as (binding) liquidity constraints, Cited by: BibTeX @ARTICLE{Dicks-mireaux84pensionwealth, author = {Louis Dicks-mireaux and Mervyn A. King and Louis Dicks-mireaux and Mervyn A. King}, title = {Pension Wealth and Household Savings: Tests of Robustness}, journal = {Journal of Public Economics}, year = {}, pages = {}}. Using three major U.K. pension reforms as natural experiments, we investigate the relationship between pension saving and discretionary private savings. Unlike most differences-in-differences approaches which rely on average differences between control and treatment group, we use economic theory to model the response of each individual by: