effects of tax policy or changes in the parameters of the economy. The relative role of life cycle savings increases with the … rate of growth and with the relative savings rate of life-cycle savers and capitalists. An increase in the savings rate of … workers has no effect on output per capita; life cycle savings simply crowds out inherited savings. A tax on capital (even if …

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 …

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 …

.S. savings behavior. The restrictions imposed by general equilibrium theory play an important role in arriving at each of these …

We develop a life-cycle model of optimal retirement and savings behavior under complete markets where retirement is … proportionately, while, contrary to conventional views, reducing savings rates. The retirement age is not simply proportional to … retirement) and higher consumption (lower savings) …

, increases in longevity lead to higher savings rates at every age, even when retirement is endogenous. In a stable population … these higher savings rates are offset by increased old age dependency, but during the disequilibrium phase, when longevity … is rising, the effect on aggregate savings rates can be substantial. Our results explain the boom in savings in East Asia …