Generational Conflict and Education Politics: Implications for Growth and Welfare

Yuki Uchida and Tetsuo Ono

No 18-05-Rev.2, 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 economicgrowth and welfare across generations. We employ probabilistic voting to demon-strate the generational con ict regarding taxes and spending and show that agingresults in a tax burden shift from the retired to the working generation, reductionin public education spending, and ultimately in slowing down economic growth.We subsequently consider a legal constraint that aims to boost education spend-ing: a spending oor for education. This constraint stimulates economic growthbut creates a trade-off between current and future generations' welfare. Finally, thequantitative implications of our results are explored by calibrating the model to theJapanese 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: 45 pages
Date: 2018-02, Revised 2019-04
New Economics Papers: this item is included in nep-dge, 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 (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1805r2

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