Marginal tax rates and tax-favoured pension savings of the self-employed: Evidence from Sweden
2009 (English)Report (Other academic)
In recent years, the study of how individuals respond to policies that aim at promoting pension savings has emerged as a vital area of economic research. This paper adds to this literature by estimating the tax price elasticity of contributions to tax-favoured pension savings accounts on a population of self-employed individuals. I exploit a unique total data base over the Swedish population that covers the years 1999 to 2005. When using instrumental variables I obtain a tax price elasticity estimate of -0.53 and a virtual income elasticity estimate of 0.11, whereas OLS produces estimates that conflict with consumer theory.
Place, publisher, year, edition, pages
Uppsala, 2009. , 32 p.
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2009:6
Income taxation, fringe benefits, individual pension savings, self-employment
Research subject Economics
IdentifiersURN: urn:nbn:se:uu:diva-161815OAI: oai:DiVA.org:uu-161815DiVA: diva2:457475