CHILD BENEFITS AND WELFARE FOR CURRENT AND FUTURE GENERATIONS: SIMULATION ANALYSES IN AN OVERLAPPING-GENERATIONS MODEL WITH ENDOGENOUS FERTILITY
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 4
Abstract
We constructed an overlapping-generations model with endogenous fertility to analyze the effects of child benefits and pensions on the welfare of current and future generations. The following results were obtained. First, in the case without pension and accelerated fiscal reforms, the best policy to improve the welfare of future generations is to finance the provision of child benefits by capital taxation, followed by issuing government debt, consumption taxation (VAT), and wage taxation, in that order. Second, debt reduction coupled with increasing child benefits is preferable to debt reduction alone to reduce public debt for future generations. In particular, coupling increased child benefits and fiscal reform simultaneously stands out as the most desirable option. Third, from the viewpoint of pension reform, maintaining pension benefits by increasing VAT is better than cutting benefits coupled with increasing child benefits for future generations.
Authors and Affiliations
Kazumasa Oguro| Associate Professor, Institute of Economic Research Hitotsubashi University, Japan, Manabu Shimasawa| Senior Researcher, National Institute for Research Advancement, Japan, Junichiro Takahata| Assistant Professor, Dokkyo University, Japan
Keywords
Related Articles
- EP ID EP1905
- DOI -
- Views 514
- Downloads 34
FINANCE-GROWTH NEXUS IN AFRICA: A PANEL GENERALIZED METHOD OF MOMENTS (GMM) ANALYSIS
The paper uses the dynamic GMM Model to examine the finance-growth nexus with panel data (1981-2010) from 24 African countries. Evidence suggests that there is a positive relationship between finance and economic growth...
PRINCIPLES OF VENTURE AND BUSINESS-ANGEL INVESTMENTS
Positive state policies in the developed countries of the world are directed towards fundamental transformation and development of innovative economical sector. One of the most principle ways for solving tasks of priorit...
INFLATION AND UNEMPLOYMENT NEXUS IN NIGERIA: ANOTHER TEST OF THE PHILLIP’S CURVE
This research work examines the inflation and unemployment nexus in Nigeria by testing if the original Phillips curve proposition holds for Nigeria. The study adopted a distributed lag model with data covering the period...
FUNDING CRISIS IN HIGHER EDUCATION INSTITUTIONS: RATIONALE FOR CHANGE
An important priority of public policy is to ensure that higher education institutions contribute to economic growth and social progress as a whole, especially in the context of today’s globalised markets and knowledge e...
APPLICATION OF PROBIT ANALYSIS TO FACTORS AFFECTING SMALL SCALE ENTERPRISES’ DECISION TO TAKE CREDIT: A CASE STUDY OF OYO STATE, NIGERIA
The study assessed the application of porbit analysis to factors affecting small scale enterprises’ decision to take credit: case study of Oyo State, Nigeria. Both questionnaire and interviewed techniques were used for d...