Munich Personal RePEc Archive

Generational Distribution of Fiscal Burdens: A Positive Analysis

Uchida, Yuki and Ono, Tetsuo (2021): Generational Distribution of Fiscal Burdens: A Positive Analysis.

[img]
Preview
PDF
MPRA_paper_108439.pdf

Download (659kB) | Preview

Abstract

This study presents a political economy model with overlapping generations to analyze the effects of population aging on fiscal policy formation and the resulting distribution of the fiscal burden across generations. The analysis focuses on the role of endogenous labor supply and shows that increased political weight of the old, arising from population aging, leads to an increase in the ratios of public debt and labor income tax revenue to GDP and an initial decrease followed by an increase in the ratio of capital income tax revenue to GDP. The result fits well with the evidence in OECD countries.

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.