The relationship between social security and private savings is crucial for important policy issues such as establishing the effects of changes in pension legislation on saving behaviour From a theoretical point of view the life cycle framework suggests that the provision of public benefits after retirement constitutes a negative incentive to accumulate resources during one’s working life As the degree of substitutability between pension and non pension accumulations depends on a variety of factors ranging from the presence of liquidity constraints bequest motives to the size of discount factors and rates of return The complexity of the problem makes it likely that quantification of the relationship between social security and saving will be empirical rather than theoretical The purpose of this study is to analyse the effects of social security on private savings for 1972 2003 period in Turkey The method of the study is linear regression with least squares The findings indicatetd that there is positive relationship between social security premiums and private savings Since Turkey is a young population country the results are expected to be pozitive
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