Childcare Support and Public Capital in an Ultra-Declining Birthrate Society

Yusuke Miyake ()
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Yusuke Miyake: Nippon Bunri University

Economics Bulletin, 2021, vol. 41, issue 2, 634-642

Abstract: This paper analyzes whether public capital investment or childcare support maximize the growth rate in an ultra-declining birth rate society using a labor-augmented model with public capital. We clarify the global stability of the private capital-public capital ratio in the steady state. In addition, we analyze the effect of increasing the expenditure share of tax revenue on economic growth. The result of this analysis shows that an increased share of public capital investment brings higher economic growth. This means that if all tax revenue is allocated to public capital investment, the growth rate will be maximized.

Keywords: Public; capital; investment・; Childcare; support・; Income; tax (search for similar items in EconPapers)
JEL-codes: E6 H8 (search for similar items in EconPapers)
Date: 2021-04-09
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