American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
The Effect of Public Pension Wealth on Saving and Expenditure
American Economic Journal: Economic Policy
vol. 10,
no. 3, August 2018
(pp. 284–308)
Abstract
This paper examines the degree of substitution between public pension wealth and private saving by studying Poland's 1999 pension reform. The analysis identifies the effect of pension wealth on private saving using cohort-by-time variation in pension wealth induced by the reform. The estimates, which are based on the 1997-2003 Polish Household Budget Surveys, show that 1 Polish zloty (PLN) less of pension wealth increases household saving by 0.3 PLN. Among highly educated households, pension wealth and private saving appear to be close substitutes.Citation
Lachowska, Marta, and Michał Myck. 2018. "The Effect of Public Pension Wealth on Saving and Expenditure." American Economic Journal: Economic Policy 10 (3): 284–308. DOI: 10.1257/pol.20150154Additional Materials
JEL Classification
- D14 Household Saving; Personal Finance
- E21 Macroeconomics: Consumption; Saving; Wealth
- H55 Social Security and Public Pensions
- I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs