The Resource An empirical analysis of the displacement effect of TFSAs on RRSPs

An empirical analysis of the displacement effect of TFSAs on RRSPs

Label
An empirical analysis of the displacement effect of TFSAs on RRSPs
Title
An empirical analysis of the displacement effect of TFSAs on RRSPs
Creator
Subject
Language
eng
Summary
The tax-free savings account (TFSA), introduced in 2009, was intended by the Canadian government to provide an alternative catchment for savings in addition to registered retirement savings plans (RRSPs). However, little empirical evidence exists regarding the impact of saving in TFSAs on saving in RRSPs. To investigate this issue, the authors conduct empirical analysis, using data from Statistics Canada's Longitudinal Administrative Databank, which contains annual TFSA and RRSP contributions for a sample of 20 percent of all Canadian taxfilers. They find evidence of a displacement effect of TFSAs on RRSPs: every 1 percent increase in a TFSA contribution reduces an RRSP contribution by approximately 0.4 percent. Their findings have implications for Canadians' ability to self-fund their retirement, as well as for the Canadian government's ability to generate future tax revenues
Citation source
In: Canadian tax journal = Revue fiscale canadienne. - Toronto. - Vol. 67 (2019), no. 2 ; p. 309-333
http://library.link/vocab/creatorName
  • Berger, L. (Leslie)
  • Farrar, J
  • Zhang, L. (Lu)
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • savings
  • retirement
  • pension
Label
An empirical analysis of the displacement effect of TFSAs on RRSPs
Instantiates
Publication
Label
An empirical analysis of the displacement effect of TFSAs on RRSPs
Publication

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      52.37366609999999 4.9336932
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