Factors Affecting Saving, Policy tools, and Tax Reform: A Review

International Monetary Fund

No 1989/047, IMF Working Papers from International Monetary Fund

Abstract: 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.

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 (search for similar items in EconPapers)
Pages: 76
Date: 1989-01-01
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1989/047

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