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Eichhorst, W., Gerard, M., Kendzia, M.J., Mayrhuber, C., Nielsen, C., Rünstler, G. and Url, T. (2011) Pension System in the EU—Contingent Liabilities and Assets in the Public and Private Sector. IZA Research Report No. 42.

has been cited by the following article:

• TITLE: Effects of Tax-Based Saving Incentives on Contribution Behavior: Lessons from the Introduction of the Riester Scheme in Germany

  AUTHORS: Swen Kuper, Thomas-Patrick Schmidt

  KEYWORDS: Subsidized Pension, Riester Scheme, Personal Income Tax, Retirement Savings

  JOURNAL NAME: Modern Economy, Vol.7 No.11, September 29, 2016

  ABSTRACT: This paper analyzes the effects of tax-based saving incentives on contribution behavior in Germany (Riester Pension). Using tax reform and inflation, the effect of the tax price on the decision of whether or not to contribute is analyzed. Our central estimate implies a local average elasticity of the contribution decision of -2.36. In addition, using shifts in price kinks over time, we show graphical evidence of the decision on how much to contribute. Our results show that taxpayers adjust their savings immediately if the subsidized amount increases. Consequently, the government has control over the contribution behavior on both margins by setting tax-based saving incentives.