Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10127751 | Journal of Public Economics | 2018 | 14 Pages |
Abstract
This study presents a two-period overlapping-generations model with endogenous growth. In each period, the government representing young and old generations 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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Real Arai, Katsuyuki Naito, Tetsuo Ono,