Public debt, child allowances, and pension benefits with endogenous fertility

Masaya Yasuoka and Atsushi Miyake

No 2012-47, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: The stock of public debt in some developed countries continues to increase because of a lack of tax revenues and the burdens of social security. Many of those developed countries suffer from lower birth rates. Child allowances might help to raise fertility, leading to higher tax revenue in the future because of an increase in the younger population. In this paper, the authors examine whether or not child allowances reduce the public debt stock as a share of Gross Domestic Product (GDP) in an economy with a pension system. As long as the long-run debt ratio is non-negative, child allowances financed by bonds always increase the public debt stock per unit of GDP.

Keywords: public debt; endogenous fertility; child allowances; pension (search for similar items in EconPapers)
JEL-codes: G23 H55 J13 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-age and nep-dem
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http://www.economics-ejournal.org/economics/discussionpapers/2012-47
https://www.econstor.eu/bitstream/10419/64611/1/726580333.pdf (application/pdf)

Related works:
Journal Article: Public debt, child allowances and pension benefits with endogenous fertility (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201247

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