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

Yusuke Miyake

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyzes whether public capital investment oor 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. Furthermore, in the second case, the model is reconstructed in such a way that the child is regarded as a nominal consumer goods in the first period and the childcare cost is regarded as a price. In that case, the impact of increased public capital on growth is shown to be minor compared to the former case.

Keywords: Public; capital; investment・; Childcare; support・; Income; tax・; Economic; growth (search for similar items in EconPapers)
JEL-codes: D91 E62 O41 (search for similar items in EconPapers)
Date: 2021-03-13
New Economics Papers: this item is included in nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/106606/1/MPRA_paper_106606.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/106907/1/MPRA_paper_106907.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/106909/1/MPRA_paper_106606.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/106910/1/MPRA_paper_106910.pdf revised version (application/pdf)

Related works:
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:pra:mprapa:106606

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().