Marginal Tax Rates and Tax‐Favoured Pension Savings of the Self‐Employed: Evidence from Sweden* |
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Authors: | Håkan Selin |
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Institution: | Uppsala University, SE‐751 20 Uppsala, Swedenhakan.selin@nek.uu.se |
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Abstract: | 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 body of 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 database over the Swedish population that covers the years 1999–2005. Using instrumental variables, I obtain a tax price elasticity estimate of ?0.51 and an income elasticity estimate of 0.13, whereas ordinary least‐squares (OLS) produces estimates that conflict with consumer theory. |
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Keywords: | Income taxation fringe benefits individual pension savings self‐employment G23 H24 J33 J26 |
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