Working Paper: NBER ID: w0962
Authors: Louis Dicksmireaux; Mervyn A. King
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.
Keywords: Pension Wealth; Household Savings; Displacement Effect
JEL Codes: H55; D91
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Pension wealth (H55) | Private savings (D14) |
| Social security wealth (H55) | Household net worth (G59) |
| Private pension wealth (H55) | Household net worth (G59) |
| Prior beliefs (D80) | Displacement effects (H31) |