Marginal Tax Rates and Tax-Favoured Pension Savings of the Self-Employed - Evidence from Sweden
CESifo, Munich, 2010
CESifo Working Paper No. 3059
![](https://cesifo.org/DocImg/cesifo1_wp3059.jpg?c=1689236963)
In recent years, the study of how individuals respond to policies that aim at promoting pension savings has emerged as a vital area of economic research. This paper adds to this literature by estimating the tax price elasticity of contributions to tax-favoured pension savings accounts on a population of self-employed individuals. I exploit a unique total data base over the Swedish population that covers the years 1999 to 2005. Using instrumental variables, I obtain a tax price elasticity estimate of –0.51 and an income elasticity estimate of 0.13, whereas OLS produces estimates that conflict with consumer theory.
Public Finance