Effectiveness of Tax Incentives to Boost (retirement) Saving: Theoretical Motivation and Empirical Evidence

Introduction ................................................................................................................................. 146 How are tax incentives supposed to work? a simple theoretical outline............................ 147 Evidence on the effectiveness of individual retirement accounts in the United States.................................................................................................................... 150 The UK experience ..................................................................................................................... 155 Aggregate evidence on the effectiveness of TESSAs ........................................................ 157 Micro-evidence on the effectiveness of ISAs ...................................................................... 159 Conclusions and thoughts for further research ....................................................................... 166 Appendix. Analysis at the individual level ................................................................................. 169 Bibliography ............................................................................................................................... 172