Rablen, M.D. orcid.org/0000-0002-3521-096X (2010) The Saving Gateway: Implications for optimal saving. Fiscal Studies, 31 (2). pp. 203-225. ISSN 0143-5671
Abstract
The Saving Gateway is a government saving initiative aiming to ‘kick-start a saving habit among people on lower incomes’. Funds saved in a Saving Gateway account up to a monthly limit are matched by the government after two years at a rate of £0.50 per £1 saved. In this paper, a Saving Gateway account is embedded alongside an ordinary interest-bearing account in a simple life-cycle model of saving to assess the implications of the scheme for optimal saving. Among the findings are that, for agents with access to credit, the Saving Gateway is associated with a fall in saving during the life of the account and a rise in consumption. However, the scheme increases saving by the credit-constrained. On their own, empirically plausible levels of habit formation in consumption preferences have too small an effect on saving to justify the scheme.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | This is the pre-peer reviewed version of the following article: Rablen, M. D. (2010), The Saving Gateway: Implications for Optimal Saving. Fiscal Studies, 31: 203-225, which has been published in final form at https://doi.org/10.1111/j.1475-5890.2010.00112.x. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. |
Dates: |
|
Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 13 Apr 2018 11:07 |
Last Modified: | 13 Apr 2018 11:07 |
Published Version: | https://doi.org/10.1111/j.1475-5890.2010.00112.x |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/j.1475-5890.2010.00112.x |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:129607 |