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 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.

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: 2021-05-14
New Economics Papers: this item is included in nep-age, nep-dem, nep-dge and nep-mac
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https://mpra.ub.uni-muenchen.de/108439/1/MPRA_paper_108439.pdf original version (application/pdf)

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 (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:108439

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