Taxation and the Household Saving Rate: Evidence from OECD Countries

16 Pages Posted: 15 Feb 2006

See all articles by Vito Tanzi

Vito Tanzi

International Monetary Fund (IMF); National Bureau of Economic Research (NBER)

Howell H. Zee

Xiamen University

Date Written: March 1998

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 OECD countries, it provides compelling and robust 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.

JEL Classification: E21, H20, H31

Suggested Citation

Tanzi, Vito and Zee, Howell H., Taxation and the Household Saving Rate: Evidence from OECD Countries (March 1998). IMF Working Paper No. 98/36, Available at SSRN: https://ssrn.com/abstract=882279

Vito Tanzi (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Tax Policy Division Fiscal Affairs Department
Washington, DC 20431
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Howell H. Zee

Xiamen University ( email )

Xiamen, Fujian 361005
China

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