Are the social security benefits of pensions or child-care policies best financed by a consumption tax?

Masatoshi Jinno and Masaya Yasuoka

MPRA Paper from University Library of Munich, Germany

Abstract: Our paper sets an endogenous fertility model and examines how tax revenues derived from a consumption tax should be used for social security benefits such as pension and child-care policies. An additional pension financed by a consumption tax can achieve Pareto-improving allocations. Child allowances and an education subsidy decrease the older generation's utility because of tax burdens and the lack of additional benefit. Even if child allowances can raise the share of young people in society and some future generation's utility, that future generation's utility decreases because of a decrease in income growth. However, with certain parametric conditions, an education subsidy can raise every generation's utility, except for that of the older generation, because of the increase in income growth.

Keywords: Endogenous fertility; Human capital; Child allowance; Education subsidy; Pension (search for similar items in EconPapers)
JEL-codes: H20 H55 I20 J13 (search for similar items in EconPapers)
Date: 2016-12-21
New Economics Papers: this item is included in nep-age, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/75652/1/MPRA_paper_75652.pdf original version (application/pdf)

Related works:
Journal Article: Are the social security benefits of pensions or child-care policies best financed by a consumption tax? (2016)
Journal Article: Are the social security benefits of pensions or child-care policies best financed by a consumption tax? (2016)
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:75652

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 ().