Second, it reduces the contribution rate, and therefore increases the after-tax income.
They therefore decide to save more out of a larger after-tax income,13 in order to smooth their consumption.
In the models with bequests, the after-tax interest rate is fixed.
The former is driven by the difference between the after-tax rate of return on foreign bonds and the domestic rate of time preference.
Different sectors are considered and employment is determined as a function of real after-tax wages.
The higher after-tax wage rate causes households to invest more in training.
Consequently, it can be solved first, and provides with the various after-tax income profiles which enter the economic model of household saving behaviour as inputs.
If a public school is chosen, all after-tax income is consumed and the child's education is fully government provided.
