Welfare and Fertility in a Neoclassical Olg Growth Model: The Effects of Intra-Generational Tax Policies

Luca Gori () and Luciano Fanti

STUDI ECONOMICI, 2007, vol. 2007/93, issue 93, 53-69

Abstract: Long-run Output, Welfare and Fertility in a Neoclassical OLG Growth Model. The Effects of Intra-generational Tax Policies - This paper examines the long-run effects of intra-generational tax policies on demographic and macroeconomic variables as well as on the lifetime welfare of the representative generation in a simple Diamond?s OLG model of growth with endogenous fertility. We show that seemingly neutral redistributive tax policies on the younger generation may be very effective as regards both economic growth and welfare. Furthermore, the wage subsidy (tax) rate may be used as a policy instrument for reducing (increasing) population growth. JEL Classification: D91, H24, J13, O41

Date: 2007
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