Generational Conflict and Education Politics: Implications for Growth and Welfare

Yuki Uchida and Tetsuo Ono

No 18-05-Rev., Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This study considers the politics of public education and its impact on economic growth and welfare across generations. We employ probabilistic voting to demon- strate the generational con ict regarding taxes and spending, and show that aging results in a tax burden shift from the retired to the working generation, a reduction in public education spending, and ultimately in slowing down economic growth. We subsequently consider a legal constraint that aims to boost education spending: a spending oor for education. This constraint stimulates economic growth, but cre- ates a trade-off between current and future generations in terms of welfare. Finally, the quantitative implications of our results are explored by calibrating the model to the Japanese economy.

Keywords: Public education; Economic growth; Capital income tax; Proba- bilistic voting (search for similar items in EconPapers)
JEL-codes: D70 E24 H52 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2018-02, Revised 2018-11
New Economics Papers: this item is included in nep-dem, nep-mac and nep-pbe
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Related works:
Journal Article: Generational conflict and education politics: Implications for growth and welfare (2021)
Working Paper: Generational Conflict and Education Politics: Implications for Growth and Welfare (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1805r

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