Active vs . Passive Decisions and Crowd-Out in Retirement Savings Accounts : Evidence from Denmark

@inproceedings{Chetty2012ActiveV,
  title={Active vs . Passive Decisions and Crowd-Out in Retirement Savings Accounts : Evidence from Denmark},
  author={Raj Chetty and Torben Heien Nielsen},
  year={2012}
}
Using 41 million observations on savings for the population of Denmark, we show that the impacts of retirement savings policies on wealth accumulation depend on whether they change savings rates by active or passive choice. Subsidies for retirement accounts, which rely upon individuals to take an action to raise savings, primarily induce individuals to shift assets from taxable accounts to retirement accounts. We estimate that each $1 of government expenditure on subsidies increases total… CONTINUE READING
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