This paper discusses recent neoclassical analyses of taxation and savings.Contrary to the popular view that fiscal … policy has highly ambiguous impacts on savings, neoclassical models admit a host of policies with clear and potentially quite … quantitative affect on savings.The essential elements of these policies involve inter- and intragenerational redistribution …

-cycle (or target date) funds. We find that life-cycle funds designed to match the risk tolerance and investment horizon of … investors have small welfare costs. All other choices, including life-cycle funds which do not match investors' risk tolerance …

expenditures could explain a large amount of aggregate savings. Adding uncertain health expenditures to the model's economy raises … long run savings by almost one third, assuming individuals self insure. Arrangements for insuring uncertain health … expenditures also have potentially quite sizable effects on savings. Introducing actuarially fair insurance to the economy with …

This article examines how the availability of annuities affects savings and inequality in economies in which neither … children pool longevity risk to their mutual advantage. The analysis of the latter economies takes into account the infinite … sequence of risk sharing bargains of successive parents with their children. Such bargains affect current risk sharing between …

savings? Is it primarily accumulation for retirement as claimed by Albert Ando, Richard Brumberg, and Franco Modigliani in … their celebrated Life Cycle Model of Savings? Is it primarily intentional accumulation for intergenerational transfers? Or … is it primarily precautionary savings, much of which may be bequeathed because of imperfections in annuity markets? This …

"hump" savings. A major difference between this study and previous investigations of this issue is the use of more accurate … savings. This paper suggests the importance of and need for substantially greater research and data collection on … intergenerational transfers. fife-cycle models of savings that emphasize savings for retirement as the dominant form of apical …

The theoretical literature presumes generational risk is large enough to merit study and that such risk can be … to directly measure generational risk and the extent to which it can be mitigated via financial markets or Social … Security. The model is trend stationary as is common in the literature. It features isoelastic preferences, moderate risk …

We consider four models of consumption that differ with respect to efficient risk-sharing and altruism. They range from … complete markets with altruism to family risk-sharing. We use a matched sample of parents and independent children available … altruism can be decisively rejected, while we fail to reject altruism and hence family risk-sharing for a subset of families …