Politics of Public Education and Pension with Endogenous Fertility

Yuki Uchida and Tetsuo Ono

No 24-07, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: Implications of increased life expectancy on parental fertility decisions and subsequent shifts in political influence between younger and older generations carry significant consequences for government policies concerning education and pension. This study introduces an overlapping generations growth model incorporating these effects, qualitatively indicating that increased life expectancy correlates with lower fertility rates, decreased education expenditure-GDP ratio, and increased pension benefit-GDP ratio. A model simulation evaluates the impact of the projected increase in life expectancy until 2100 on four country groups: synthetic rich OECD, synthetic rich OECD Europe, Japan, and the United States. The findings demonstrate similar trends as in the qualitative analysis, yet growth rates are projected to vary significantly across regions and countries due to differing life expectancy increases.

Keywords: Fertility; Public Pension; Public Education; Probabilistic Voting; Overlapping Generations (search for similar items in EconPapers)
JEL-codes: D70 E62 H52 H55 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2024-05
New Economics Papers: this item is included in nep-age, nep-dge, nep-gro and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:2407

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