Pension saving responses to anticipated tax changes: Evidence from monthly pension contribution records

Kreiner, Claus Thustrup; Leth‐Petersen, Søren; Skov, Peer Ebbesen

doi:10.1016/j.econlet.2016.11.011

“…We consider changes in income over the full 4 year period to allow time for potentially gradual behavioral responses to materialize and to avoid short term income shifting affecting the estimates. In particular, we avoid capturing the income shifting from 2009 to 2010 documented by Kreiner et al (2016Kreiner et al ( , 2017 In Panel C we estimate the changes in trend differentials between the pre-reform and reform periods by running the regression . Hence, the coefficients δ 3 capture the changes in income trend differentials across the income distribution.…”

Section: The 2009-10 Tax Reformmentioning

confidence: 99%

Identifying Behavioral Responses to Tax Reforms: New Insights and a New Approach

Jakobsen

¹

,

Søgaard

²

2020

SSRN Journal

1

0

View full text Add to dashboard Cite

We revisit the identification of behavioral responses to tax reforms and develop a new approach that allows for graphical validation of identifying assumptions and representation of treatment effects. Considering typical tax reforms, such as a reduction in the top income tax, we show that the state-of-the-art estimation strategy relies on an assumption that trend differences in income across the income distribution remain constant in the absence of reforms. Similar to the pre-trend validation of differencesin-differences studies, this identifying assumption of constant trend differentials can be validated by comparing the evolution of income in untreated parts of the income distribution over time. We illustrate the importance of our new validation approach by studying a number of tax reforms in Denmark, and we show how violations of the identifying assumption may drive the estimates obtained from the state-of-the-art strategy (JEL: C14 H30 J22)

show abstract

“…We consider changes in income over the full 4 year period to allow time for potentially gradual behavioral responses to materialize and to avoid short term income shifting affecting the estimates. In particular, we avoid capturing the income shifting from 2009 to 2010 documented by Kreiner et al (2016Kreiner et al ( , 2017. 19 In Panel C we estimate the changes in trend differentials between the pre-reform and reform periods by running the regression…”

Section: The 2009-10 Tax Reformmentioning

confidence: 99%

Identifying Behavioral Responses to Tax Reforms: New Insights and a New Approach

Jakobsen

¹

,

Søgaard

²

2020

SSRN Journal

0

View full text Add to dashboard Cite

We revisit the identification of behavioral responses to tax reforms and develop a new approach that allows for graphical validation of identifying assumptions and representation of treatment effects. Considering typical tax reforms, such as a reduction in the top income tax, we show that the state-of-the-art estimation strategy relies on an assumption that trend differences in income across the income distribution remain constant in the absence of reforms. Similar to the pre-trend validation of differencesin-differences studies, this identifying assumption of constant trend differentials can be validated by comparing the evolution of income in untreated parts of the income distribution over time. We illustrate the importance of our new validation approach by studying a number of tax reforms in Denmark, and we show how violations of the identifying assumption may drive the estimates obtained from the state-of-the-art strategy (JEL: C14 H30 J22) * We thank

show abstract

“…An index that is frequently used to reflect the overall health and quality of life of people in a nation or region is the average life expectancy of the population [ 10 ]. The average lifespan of the population has steadily increased, thanks to improvements in living standards, medical and health services, and the infant mortality rate (which has been steadily declining) [ 11 ]. Many workers consider the retirement age from their own point of view, and whether it is postponed or not is also highly controversial.…”

Section: Introductionmentioning

confidence: 99%

Analysis of Balance of Income and Expenditure and Optimal Retirement Age of Pension Insurance Co-Ordination Account Based on Improved Machine Learning Algorithm

Yan

¹

,

Zhou

²

,

Zhang

³

2022

Computational Intelligence and Neuroscience

5

0

View full text Add to dashboard Cite

Since the turn of the twenty-first century, the issue of aging has gained international attention. Both developed and developing nations are currently dealing with this issue. To ensure the sustained and healthy growth of the economy and society in the face of an aging society, it is especially important to establish a scientific old-age insurance system and a reasonable retirement system. We are all aware that the key indicators for the state to control the old-age insurance system in the old-age insurance system are the income and expenditure balance of the old-age insurance pooling account and the analysis of the ideal retirement age. In this paper, a better machine algorithm is used. By independently learning the rules present in a large amount of data and gaining new experience and knowledge, machine learning (ML) can increase computer intelligence and give computers decision-making abilities comparable to those of humans. In general, a machine learning algorithm uses the laws it derives from data to predict unknown data after automatically analysing the data. This study’s findings suggest that the ideal retirement age and life expectancy are positively correlated, with the ideal retirement age’s growth rate 12.57 percent higher than that of life expectancy.

show abstract

Pension saving responses to anticipated tax changes: Evidence from monthly pension contribution records

Cited by 9 publications

References 1 publication

Identifying Behavioral Responses to Tax Reforms: New Insights and a New Approach

Identifying Behavioral Responses to Tax Reforms: New Insights and a New Approach

Identifying Behavioral Responses to Tax Reforms: New Insights and a New Approach

Analysis of Balance of Income and Expenditure and Optimal Retirement Age of Pension Insurance Co-Ordination Account Based on Improved Machine Learning Algorithm

Contact Info

Product

Resources

About