Taxation and the Household Saving Rate: Evidence from OECD Countries

BNL Quarterly Review,Vol. 53, No. 212, March 2000

13 Pages Posted: 13 May 2013

See all articles by Vito Tanzi

Vito Tanzi

Inter-American Development Bank (IADB)

Howell H. Zee

Xiamen University

Date Written: March 15, 2000

Abstract

This paper analyzes anew the relationship between taxation and the household saving rate. On the basis of standard savings and tax revenue data from a sample of OECD countries, it provides compelling empirical evidence of a powerful impact of taxes on household savings. In particular, income taxes are shown to affect negatively the household saving rate much more than consumption taxes.

Keywords: Consumption, Revenue, Saving, Tax, Taxation, Taxes

JEL Classification: E21, H24, H31

Suggested Citation

Tanzi, Vito and Zee, Howell H., Taxation and the Household Saving Rate: Evidence from OECD Countries (March 15, 2000). BNL Quarterly Review,Vol. 53, No. 212, March 2000, Available at SSRN: https://ssrn.com/abstract=2264122

Vito Tanzi (Contact Author)

Inter-American Development Bank (IADB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

Howell H. Zee

Xiamen University ( email )

Xiamen, Fujian 361005
China

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