Arbeitspapier
Intra-household allocation of non-mandatory retirement savings
Traditionally, households have been seen as acting as a single unit when it comes to savings. Although this might be correct for some parts of household savings, we question the correctness of the unitary model with respect to non-mandatory retirement savings. To answer this question we analyze the intra-household allocation of retirement savings between partners in Germany. First, the decision to save at all is analyzed using a seemingly unrelated bivariate probit model, showing that the possession of retirement saving accounts among spouses is positively correlated, hinting at a 'crowding-in' of saving accounts. However, this could be only due to some tax reasons. Thus, we analyze additionally the interaction of savings between spouses using three-stage least squares, allowing for endogeneity between the spouse's savings. These results additionally show a 'crowding-in' of total retirement saving amounts between spouses, probably due to some 'recognition effect'. The unitary model of household decision making can thus be rejected with respect to retirement savings.
- Language
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Englisch
- Bibliographic citation
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Series: Diskussionsbeiträge ; No. 60
- Classification
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Wirtschaft
Household Saving; Personal Finance
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Fiscal Policies and Behavior of Economic Agents: Household
- Subject
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savings
intra-household allocation
retirement
life-cycle
unitary model
household decision
three-stage least squares
- Event
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Geistige Schöpfung
- (who)
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Metzger, Christoph
- Event
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Veröffentlichung
- (who)
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Albert-Ludwigs-Universität Freiburg, Forschungszentrum Generationenverträge (FZG)
- (where)
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Freiburg i. Br.
- (when)
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2016
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Metzger, Christoph
- Albert-Ludwigs-Universität Freiburg, Forschungszentrum Generationenverträge (FZG)
Time of origin
- 2016