Earticle

초록

영어

Longer life expectancy and insufficient savings expose individuals to financial vulnerability in older ages and prompt government support measures. We study a government subsidy program for the low-income elderly population in Singapore. Using comprehensive, high-frequency transaction data, we estimate a marginal propensity to consume (MPC) out of the permanent income increases of 0.7, driven by precautionary savings and bequest motives. More liquidity-constrained recipients exhibit an MPC of 1. We find no evidence of labor supply reduction or other strategic behaviors. We discuss implications for eligibility criteria, payment frequency, and distribution form in policy design.

목차

Abstract
1 Introduction
2 The Silver Support Scheme in Singapore
3 Data and summary statistics
4 Empirical approach
5 Consumption response to the subsidy program
A Average spending response to program inception
B Falsification tests
C Spending response to recurring subsidy payments
D Mechanism: Precautionary savings and bequest motives
E Heterogeneity in the spending response
F Characteristics of the spending response
6 Labor supply and housing responses to the subsidy program
A Recipients’ labor supply and housing responses
B Tests of strategic adjustments prior to the program eligibility age
7 Implications for policy design
A Criteria in the means test
B Payment frequency
C Distribution form
8 Conclusion
References
Figure
Table
Online Appendix
References for the online appendix
Figure OA
Table OA

키워드

저자

• Sumit Agarwal [ National University of Singapore ]
• Wenlan Qian [ National University of Singapore ]
• Tianyue Ruan [ National University of Singapore ]
• Bernard Yeung [ National University of Singapore ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330