A further problem with the aggregate saving rate, in particular, as a measure of saving behaviour, is in the treatment of passive saving (i.e. accumulation through unrealised capital gains). For a discussion of this issue in the US context, see W. Gale and J. Sabelhaus, 'Perspectives on the household savings rate',

This paper addresses the issue of whether tax revenue from alcohol lost through cross-border shopping could be recouped by cutting excise duties. This in turn depends on the elasticity of demand for alcohol.We use data from the Family Expenditure Survey 1978-96 to estimate own-and cross-price elasticities of demand for beer, wine and spirits before and after completion of the Single Market. We find no evidence of a significant change in elasticities after the Single Market. The tax rates on beer and wine are currently below their revenue-maximising rates, implying that a cut in the duty rate on beer or wine would lead to a decrease in indirect tax revenue from alcohol. We cannot reject that the current tax rate on spirits is at the revenue-maximising rate, implying that further increases in the duty on spirits are likely to cause indirect tax revenue to fall.JEL classification: H21.

This paper considers the relevance of a set of generational accounts in informing policy debate in the UK. With regard to transparency, Generational Accounts can, under sensible assumptions, provide a useful summary statistic to supplement our analysis of government policy. Interpreting differences in the accounts across groups as measures of the incidence or redistributiveness of existing or proposed policies is more problematic. With respect to UK pension reform, within‐cohort differences raise important issues. Finally we argue that past pension reforms have been characterised by inaccurate forecasts as opposed to a lack of understanding of the generational incidence of proposed policy.