This problem considers Chetty et al (2014 QJE) from the reading list. It is recommended to read the paper before attempting the problem, or work through the problem as you read.

A) How would your answer to question 3 parts c and d change if individuals were passive savers?

B) The authors examine the effects of policies on total saving using three distinct research designs: changes to employer-sponsored pension contributions that accompany job switches, the 1998 Danish Mandatory Savings Plans, and the reduction of a subsidy for contributions to capital pensions in 1999. For each of these three different research designs:

1. Summarize the research design.

2. State the identifying assumption(s) behind this research design.

3. Describe how the authors defend this assumption against potential criticism.

4. Summarize what the authors found.

C) Relate the results of the paper to the theory. What do we learn from these results about the effectiveness of various potential policies for increasing private saving?