Child Benefit and Fiscal Burden: OLG Model with Endogenous Fertility

Kazumasa Oguro, Takahata Junichiro and Shimasawa Manabu

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we present an OLG simulation model with endogenous fertility in order to analyze the relationship between child benefit and fiscal burden in Japan. Our simulation results show that expansion of the child benefit will improve the welfare of current and future generations. On the other hand, our findings show that we cannot expect a significant long-term improvement in welfare solely from implementing a policy of increasing the consumption tax. If both the sustainability of the fiscal budget and the improvement of the welfare of current and future generations are requirements, we will need to promote a strategy consisting of such components as a policy-mix that includes both child benefit expansion and additional fiscal reform, i.e. increasing the consumption tax. Implementation of such a policy-mix could be expected to yield a higher economic level in the welfare of current and future generations than could be expected solely from consumption tax reform.

Keywords: Computable general equilibrium (CGE) model; overlapping generations (OLG); child benefit; endogenous fertility (search for similar items in EconPapers)
JEL-codes: D61 E17 E62 H55 J11 J13 (search for similar items in EconPapers)
Date: 2009-07
New Economics Papers: this item is included in nep-cmp, nep-dge and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/16132/1/MPRA_paper_16132.pdf original 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:16132

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 ().