savings

Is An 'Englishman's Home' His Pension?

This research project considers whether buying houses may reduce long-term savings in the UK economy. This may explain the UK’s relatively low investment rate and weaker productivity performance over the long term. The study has two parts. First, we present new evidence on the saving behaviour of UK households showing that buying a house with a mortgage results in a lower saving rate, which is likely to mean less pension savings. Second, we examine the consequences for the UK of shifting the allocation of saving from housing and towards business investment. 

LINDA: A dynamic microsimulation model for analysing policy effects on the evolving population cross-section

This paper describes a structural dynamic microsimulation model that generates individual-specifi…c data over a range of demographic and economic characteristics at discrete intervals through-out a simulated time horizon. The model is designed to analyse the distributional implications of policy alternatives over appreciable periods of time. This focus motivates endogenous simulation of savings and labour supply decisions, taking explicit account of uncertainty regarding the evolving decision environment.

Modelling the dynamic effects of transfer policy through the life-course: the LINDA policy analysis tool

This paper describes a structural dynamic microsimulation model that generates individualspecific data over a range of demographic and economic characteristics at annual intervals over the life-course. The model is specifically designed to analyse the distributional implications of policy alternatives in terms of their bearing on income and consumption measured over alternative time periods, from one year up to the entire life-course.

Modelling the dynamic effects of transfer policy: the LINDA policy analysis tool

This paper describes a structural dynamic microsimulation model that generates individualspecific data over a range of demographic and economic characteristics at annual intervals overthe life-course. The model is specifically designed to analyse the distributional implications of policy alternatives in terms of their bearing on income and consumption measured over alternative time periods, from one year up to the entire life-course.

A Structural Dynamic Microsimulation Model of Household Savings and Labour Supply

A structural model of the household is described that represents current best-practice in the analysis of savings and labour supply responses to the policy environment. Care has been taken in specifying the model so that it represents an appropriate basis for the analysis of incentive effects to policy change, and for exploring the empirical support for alternative structural assumptions. Matching the model to survey data for the UK reveals some interesting puzzles in relation to the timing of retirement.