EconPapers    
Economics at your fingertips  
 

Intergenerational policies, public debt, and economic growth: a politico-economic analysis

Real Arai (), Katsuyuki Naito and Tetsuo Ono ()

No 18-12, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This study presents a two-period overlapping-generations model with endoge- nous growth. In each period, the government representing young and old gener- ations provides a public good financed by labor income taxation and public debt issuance, and the government's policies are determined by probabilistic voting. Increased political power of the old lowers economic growth. A debt-ceiling rule is considered to resolve the negative growth effect, but it creates a trade-off between generations in terms of welfare.

Keywords: public debt; probabilistic voting; Markov perfect equilibrium; eco- nomic growth (search for similar items in EconPapers)
JEL-codes: D72 H41 H63 O43 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-gro and nep-pol
Date: 2018-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www2.econ.osaka-u.ac.jp/library/global/dp/1812.pdf (application/pdf)

Related works:
Journal Article: Intergenerational policies, public debt, and economic growth: A politico-economic analysis (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1812

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Atsuko SUZUKI ().

 
Page updated 2019-04-14
Handle: RePEc:osk:wpaper:1812