Precautionary Saving and Old-Age Pensions

Arbeitspapier

A precautionary saving model is extended to include old-age pensions and provides the framework for an empirical analysis of the relation between old-age pensions and private consumption. Norwegian macro-data for socioeconomic groups of households are used to estimate consumption functions for workers and pensioners. We find no effects from various approximations of expected pension-income to consumption for workers, but results indicate some influence from labour-income uncertainty. Income elasticities are found to differ considerably between the two groups of households. Implications for effects on aggregate saving from pension policies and of ageing populations are discussed.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Papers ; No. 108

Classification and Topics

• Classification: Wirtschaft ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Macroeconomics: Consumption; Saving; Wealth ; Social Security and Public Pensions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Magnussen, Knut A.
• Event: Veröffentlichung
• (who): Statistics Norway, Research Department
• (where): Oslo
• (when): 1994

Further information

• Handle: http://hdl.handle.net/10419/192092