Future direction of government-sponsored private capital accumulation

Public support for capital formation of households in Germany is currently regulated in the 5th Capital Accumulation Act (CAA). Public support for household savings has a long tradition in the Federal Republic of Germany since the early 1960s. In this study, the achievements of the CAA are critically examined and proposals for the further development of the CAA are elaborated.

The IAW contributes the first project module in which the current role of the CAA is statistically documented. To this purpose, several micro-data sets are analysed. On the basis of the findings, conclusions are drawn with respect to the current economic importance of the CAA.

• ZEW - Centre of European Economic Research, Mannheim [ZEW]
• FiFo - Institute for Public Economics University of Cologne [FiFo]