@article {7327,
	title = {The Elasticity of Intertemporal Substitution: New Evidence from 401(k) Participation},
	journal = {Economics Letters},
	volume = {103},
	year = {2009},
	pages = {15-17},
	publisher = {103},
	abstract = {A key parameter in economics is the elasticity of intertemporal substitution (EIS), which measures the extent to which consumers shift total expenditures across time in response to changes in the effective rate of return. In contrast to the previous literature, which primarily has relied on Euler equation methods and generated a wide range of estimates, we show how a life-cycle-consistent econometric specification of employee 401(k) participation along with plausibly exogenous variation in rates of return due to employer matching contributions can be used to generate new estimates of the EIS. Because firms often cap the generosity of the match, employer matching generates non-linearities in household budget sets. We draw on non-linear budget-set estimation methods rooted in the public economics literature, and using detailed administrative contribution, earnings, and pension-plan data for a sample of 401(k)-eligible households from the Health and Retirement Study, we estimate the EIS to be 0.74 in our richest specification, with a 95  confidence interval that ranges from 0.37 to 1.21.},
	keywords = {Consumption and Savings, Methodology, Pensions},
	doi = {https://doi.org/10.1016/j.econlet.2009.01.010},
	author = {Gary V. Engelhardt and Kumar, Anil}
}
@article {7118,
	title = {Employer Matching and 401(k) Saving: Evidence from the Health and Retirement Study},
	journal = {Journal of Public Economics},
	volume = {91},
	year = {2007},
	pages = {1920-43},
	publisher = {91},
	abstract = {Employer matching of employee 401(k) contributions can provide a powerful incentive to save for retirement. We examine the effect of matching on 401(k) saving accounting for non-linearities in the intertemporal budget set. We use detailed administrative contribution, earnings, and pension plan data from the Health and Retirement Study and estimate that the elasticity of contributions with respect to matching is 0.15-0.27 overall, with sixty percent of this effect on the participation margin and the remaining forty percent on the intensive margin. The estimated after-tax cross-price elasticity of 401(k) contributions with respect to IRA saving is -0.60, which suggests 401(k)s and IRAs are substitutes in tax-deferred saving. We find no evidence of endogenous worker sorting based on the discount rate to plans that offer matching.},
	keywords = {Consumption and Savings, Employment and Labor Force, Pensions},
	doi = {https://doi.org/10.1016/j.jpubeco.2007.02.009},
	author = {Gary V. Engelhardt and Kumar, Anil}
}
