Taxation and the Household Saving Rate: Evidence from OECD Countries

Howell Zee and Vito Tanzi

No 1998/036, IMF Working Papers from International Monetary Fund

Abstract: This paper analyzes anew the relationship between taxation and the household saving rate. On the basis of standard savings and tax revenue data from, it provides compelling and robust empirical evidence of a powerful impact of taxes on household savings. In particular, income taxes are shown to affect negatively the household saving rate much more than consumption taxes.

Keywords: WP; tax; consumption; tax revenue; GDP; GDP ratio; consumption tax coefficient; income elasticity; household savings; tax variable; Consumption taxes; Income and capital gains taxes; Income tax systems; Social security contributions (search for similar items in EconPapers)
Pages: 16
Date: 1998-03-01
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Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Taxation and the household saving rate: evidence from OECD countries (2000)
Journal Article: Taxation and the household saving rate: evidence from OECD countries (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1998/036

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