Pension Wealth and Household Savings: Tests of Robustness

44 Pages Posted: 23 Jun 2004 Last revised: 20 Aug 2022

See all articles by Louis Dicks-Mireaux

Louis Dicks-Mireaux

National Bureau of Economic Research (NBER)

Mervyn King

Bank of England; National Bureau of Economic Research (NBER)

Date Written: August 1982

Abstract

A substantial literature exists on the impact of pension schemes, both public and private, on the level of household saving. Yet there is no clear consensus on the impact of pensions on private saving. In this paper we show how beliefs about this displacement effect are modified by prior beliefs both about variables which ntight be relevant in an equation for private savings and about the magnitude of the displacement effect. Using data for 8,279 Canadian households, and estimates of pension wealth (both private and social security) which we construct for each household in the sample, the estimated displacement effects are found to be relatively robust with respect to both types of prior belief.

Suggested Citation

Dicks-Mireaux, Louis and King, Mervyn A., Pension Wealth and Household Savings: Tests of Robustness (August 1982). NBER Working Paper No. w0962, Available at SSRN: https://ssrn.com/abstract=300734

Louis Dicks-Mireaux

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