Download or read book Assessing the Effectiveness of Saving Incentives written by R. Glenn Hubbard and published by A E I Press. This book was released on 1996 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we argue that there is more to be learned from recent research on the effectiveness of targeted saving incentives than is suggested by the wide variation in empirical estimates. First, we conclude that characterizations of saving appear to stimulate moderate amounts of new saving. Second, we suggest a cost-benefit approach to ask: What is the incremental gain in capital accumulation per dollar of foregone revenue? We find that for quite conservative measures of the saving impacts of IRAs or 401(k)s, the incremental gains in capital accumulation per dollar of lost revenue are large.