Tax incentives and household investment in complementary pension insurance: some recent evidence from the Italian experience

Marino, Immacolata and Pericoli, Filippo and Ventura, Luigi (2010): Tax incentives and household investment in complementary pension insurance: some recent evidence from the Italian experience. Published in: Risk Management and Insurance Review , Vol. 14, No. 2 (2011): pp. 247-263.

Abstract

We show, by a simple difference-in-difference methodology that, contrary to prior research, robustly raising the deductibility limit associated to pension fund holdings in Italy did not succeed in boosting households’ contributions to this form of savings. Some other empirical finding also suggest that this policy measure may have not even increased the average amount of first time contributors to such funds. In view of the specific features of the Italian market for complementary insurance (relatively young and less developed), these empirical results might be of interest to policymakers acting in countries with similar features (for instance, some of the more recent EU members).

• Item Type: MPRA Paper
• Language: English
• Keywords: Pension funds; fiscal incentives; difference-in-difference
• Subjects: H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H31 - Household; D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis

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