The effectiveness of tax-favored savings accounts in raising national savings depends crucially upon the willingness of households to reduce consumption in order to finance contributions to these accounts. The debate over the tax deductibility of IRA's has centered on whether IRA contributions...

A major debate exists on whether expanding tax--favoured savings accounts such as Individual Retirement Accounts (IRAs) will increase national savings. Much of the empirical debate has centred on whether IRA contributions before the Tax Reform Act of 1986 represented new savings or merely...

A major debate exists on whether expanding tax-favored savings accounts such as Individual Retirement Accounts (IRAs) will increase national savings. Much of the empirical debate on this question has centered on whether IRA contributions before the Tax Reform Act of 1986 represented new savings...