À繫¿¬±¸ Á¦ ±Ç È£ (2023³â 11¿ù)
Asian Review of Financial Research, Vol., No..
pp.251~325
pp.251~325
Supporting Seniors: How Low-Income Elderly Individuals Respond to a Retirement Support Program
Sumit Agarwal National University of Singapore
Wenlan Qian National University of Singapore
Tianyue Ruan National University of Singapore
Bernard Yeung National University of Singapore
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.
Sumit Agarwal
Wenlan Qian
Tianyue Ruan
Bernard Yeung
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.
[ 07327 ] 67-8, Yeouinaru-ro, Yeongdeungpo-gu, Seoul, Korea TEL. +82-2-2003-9921 FAX. +82-2-2003-9979 E-mail. office@korfin.org COPYRIGHT(C) SINCE 1987 KOREAN FINANCE ASSOCIATION. All rights reserved.