"We study optimal labor and savings distortions in a lifecycle model with idiosyncratic shocks. We show a tight …-based expressions for the dynamic optimal distortions. We derive a generalization of a savings distortion for non-separable preferences …

both individual survey data on wealth holdings and administrative data on earnings histories from the UK to examine this … question. We find evidence of a positive relationship between saving rates (and wealth accumulation) and levels of permanent … the US, but somewhat at odds with evidence from the UK which has examined retirement wealth and lifetime earnings in the …

English couple households born in the 1940s. Here, 'optimal' wealth holdings are those that allow households to enjoy the same … calculate this level of wealth, and compare that with how much wealth households are observed to hold. We find that the majority … of households hold more wealth than our model suggests is optimal and that this would still be true even if housing …