This paper examines the effects of Individual Retirement Accounts (IRAs) on private and national saving. We construct a formal model of dynamic utility maximization that generates closed-form equations for IRA and other saving. Our empirical estimates indicate that raising the annual IRA...

This paper focuses on two aspects of the tax changes enacted in the Tax Reform Act of 1986 (TRA86). First, the TRA86 phased out tax deductions for interest on consumer debt, which contributed to a marked shift in the composition of household debt. Second, the TRA86 restricted the tax...