Introduction Modem theories of intertemporal consumption choice emphasize that individuals may save for variety of motives: to smooth life-cycle fluctuations in income (the retirement, or life-cycle motive), to face emergencies arising from income or health risks (the precautionary motive), to purchase durable goods and housing, and to accumulate resources for one's heir (the bequest motive) (cf. Browning and Lusardi, 1996). Individual choice may be affected by the government policies that,...