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Indiana University Bloomington

Doctoral Programs

1960 Notable

From 1960-2013, we prepared nearly 1,200 men and women
for rewarding academic careers — that’s more than any other university.

Book Chapters

Tax Policy, Saving, and Pension Funding

1996, Pensions, Savings, and Capital Markets

Scott B. Smart, Joel Waldfogel


In this paper we examine whether individuals adjust their savings behavior in response to changes in employer contributions to defined benefit pension plans.  We find that as employers reduce their contributions in response to higher-than-expected returns on investments, individuals do not offset those reductions, resulting in a net reduction in saving in response to higher interest rates.


Smart, Scott B. and Joel Waldfogel (1996), "Tax Policy, Saving, and Pension Funding," in Pensions, Savings, and Capital Markets, U.S. Department of Labor.