Taxes, Corporate Dividend Policy and Personal Savings: The British Postwar Experience

The Substitutability Between Discretionary and Contractual Saving and the ‘Propensity’ to Save Profit and Wage Income in the UK

“…The use of the gross (inclusive of depreciation) measure of CORE is in line with established practice as depreciation allowances are often used for investment and/or tax avoidance purposes, see e.g. Lambrinides [1972], Feldstein [1973], Feldstein and Fane [1973].…”

Factors Affecting Saving, Policy Tools, and Tax Reform: A Review

“…Nevertheless, other evidence indicates that the corporate veil is only partially transparent and that additional corporate saving will affect total saving. Feldstein (1973) and Feldstein and Fane (1973) show that although individuals "see through the corporate veil," an increase in saving by the corporation will be offset only partially by a decrease in saving by individuals. Feldstein found that the marginal propensity to consume retained earnings in the United States was about 0.5 in contrast to a marginal propensity to consume disposable income of 0.75.…”

On (Ultra) rationality and the corporate and government veils

“…There are a number of empirical studies, with mixed results. These report the existence of substitutability, which ranges from very low (Pitelis, 1987a(Pitelis, , 1997Poterba, 1987Poterba, , 1991 to moderate (Feldstein and Fane, 1973) and high (Feldstein, 1973;Koskela and Viren, 1984). 6 (Ultra) Rationality 383 © Blackwell Publishing Ltd and The Victoria University of Manchester, 2004.…”