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active versus passive savers: a standalone construct

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active versuspassive savers1 CONSTRUCTActive versus passiveCHETTY · BEHAVIORAL ECONOMICS

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Behavioral economics

most people not responding to tax subsidies for saving while automatic contributions raise total saving, separating active from passive savers.

In behavioral economics, active versus passive savers refers to most people not responding to tax subsidies for saving while automatic contributions raise total saving, separating active from passive savers. This meaning comes from Chetty (2014) in The Quarterly Journal of Economics.[1]

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References

  1. Chetty, R., Friedman, J. N., Leth-Petersen, S., Nielsen, T. H., & Olsen, T. (2014). Active vs. Passive Decisions and Crowd-Out in Retirement Savings Accounts: Evidence from Denmark. The Quarterly Journal of Economics, 129(3), 1141-1219. https://doi.org/10.1093/qje/qju013

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