How Do Tax Subsidies Shape Savings Decisions of Households?
How Do Tax Subsidies Shape Savings Decisions of Households?
Period:
01.03.2017 – 28.02.2018
We combine data on household finances (the Household Finance and Consumption Survey) with detailed information on tax and social security systems across Europe. This combination provides a unique dataset to examine the effectiveness of tax incentives in increasing households’ savings and thereby their wealth. More specifically, we analyze the impact of marginal tax rates (including the costs of social security) on private households’ portfolio allocation and portfolio weights.
