How Should A Government Finance for Pension Benefit?
Masaya Yasuoka
MPRA Paper from University Library of Munich, Germany
Abstract:
Based on Ono (2010), this short note presents consideration of the consumption tax and examines how tax reform to maintain the neutrality of pension benefit affects income growth rate and the employment rate. A decrease in the contribution rate of workers with an increase in consumption tax raises employment, but the effect on income growth is ambiguous. A decrease in the contribution rate of firms with an increase in consumption tax decreases the employment and facilitates income growth.
Keywords: Aging society; Elderly care services; Tax system; Endogenous growth (search for similar items in EconPapers)
JEL-codes: H21 H51 J14 (search for similar items in EconPapers)
Date: 2018-06-20
New Economics Papers: this item is included in nep-age and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:87483
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