Pension saving responses to anticipated tax changes:Evidence from monthly pension contribution records

AbstractA Danish tax reform, passed in May 2009 and taking effect from the beginning of 2010, lowered the marginal tax rate on top bracket taxable income from 63% to 56%. Because contributions to pension accounts are tax deductible, the reform provided an incentive to increase pension contributions before the change in taxation. Using high frequency panel data, we document a temporary increase in pension contributions in the second half of 2009 in response to the anticipated change in taxation, and that this led to an increase in total savings in this period. The response is driven by less than 5% of those affected by the policy

Preferences predict who commits crime among young men

Who commits crime? Theoretically, risk-tolerant and impatient people are more likely to commit crime because they care less about the risks of apprehension and punishment. By linking experimental data on risk tolerance and impatience of young men to administrative crime records, we find empirical support for this hypothesis. For example, crime rates are 8 to 10 percentage points higher for the most risk-tolerant people compared to the most risk averse. A theoretical implication is that those who are most prone to commit crime are also those who are least responsive to stricter law enforcement. Risk tolerance and impatience significantly predict property crime, while self-control is a stronger predictor of crimes of passion (violent, drug, and sexual offenses)