Marginal Tax Rates and Tax-Favoured Pension Savings of the Self-Employed - Evidence from Sweden

By H̊akan Selin. Social Science Research Network, 2012

111 citations recorded by the source corpus.

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. Using instrumental variables, I obtain a tax price elasticity estimate of –0.51 and an income elasticity estimate of 0.13, whereas OLS produces estimates that conflict with consumer theory.

Subfields: Accounting, Economics and Econometrics, Gender Studies

View Paper: https://www.semanticscholar.org/paper/b2bac0a1e9425552d1ef7d0515148ae10db3ff67

Citations in the corpus

• Bunching and Non-Bunching at Kink Points of the Swedish Tax Schedule (2012, unknown): “4See Saez et al (2010) for a US centered overview of the taxable income literature and section 4 of Pirttilä and Selin (2011) for a survey of the Swedish literature. e=0.01 The figure demonstrates that, even when the elasticity is as low as 0.01, there is a clear spike at the first central…”