Do Savers Respond to Tax Incentives? The Case of Retirement Savings
Mardi | 2010-11-23 B103 Clément CARBONNIER – Alexis DIRER – libre This article exploits a large micro-file tax return data to test whether savers respond to the presence of tax incentives by contributing more in saving accounts that mandate annuitization at retirement. A frictionless model of demand for annuity is first set, which highlights the phenomenon of bunching of savers around tax thresholds when consumers’ budget set is kinked. Using French households income tax data, we do not find any […]