Generational Distribution of Fiscal Burdens: A Positive Analysis

Yuki Uchida and Tetsuo Ono

MPRA Paper from University Library of Munich, Germany

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 fiscal burden across generations. The analysis shows that increased political power of the old, arising from population aging, leads to (i) an increase in the ratio of labor income tax revenue to GDP and the ratio of debt to GDP, and (ii) an increase in the ratio of capital income tax revenue to GDP in countries with high degrees of preferences for public goods, but an initial decrease followed by an increase in this ratio in countries with low degrees of preferences for public goods.

Keywords: Generational burden; Overlapping generations; Political economy; Population aging; Public debt (search for similar items in EconPapers)
JEL-codes: D70 E24 E62 H60 (search for similar items in EconPapers)
Date: 2020-09-09
New Economics Papers: this item is included in nep-age, nep-dge, nep-mac, nep-pbe and nep-pol
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Related works:
Journal Article: Generational Distribution of Fiscal Burdens: A Positive Analysis (2024)
Working Paper: Generational Distribution of Fiscal Burdens: A Positive Analysis (2023)
Working Paper: Generational Distribution of Fiscal Burdens: A Positive Analysis (2021)
Working Paper: Generational Distribution of Fiscal Burdens: A Positive Analysis (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:102826

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