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 436
- Downloads 34
DEPRECIATION RATE OF R&D CAPITAL: PANEL DATA ANALYSIS OF LISTED FIRMS IN JAPANESE R&D-INTENSIVE INDUSTRIES
Research and development (R&D) capital is thought to be at the core of technological progress. To measure the effect of R&D capital correctly, the knowledge of its depreciation rate is required. However, few studies have...
THE RELATIONSHIP BETWEEN BLOCK HOLDERS AND FIRM DIVIDEND POLICY
Block holders have significant impacts on the firm’s policies, especially strategies regarding the payout policy. The purpose of this study is to investigate the relationship between ownership structure and firm dividend...
FINANCIAL REPORTS QUALITY AND CORPORATE SOCIAL RESPONSIBILITY
This study explores the correlation between CSR and the quality of financial reports according to Stewardship Theory for 100 Best Corporate Citizens. The empirical results of the overall samples indicated that by practic...
ARE THERE LONG-TERM EFFECTS ON WAGES WHEN GRADUATING IN A BAD ECONOMY IN TAIWAN?
Entering labor market during a bad economy can be intuitively connected to worse working experience at the beginning of one?s career, and moreover, the effect would persist for many years to come. We empirically estimate...
ECONOMIC PROSPECTS AND PROBLEMS OF CANE BASED FURNITURE ENTERPRISES AS FAMILY BUSINESS AND THEIR BUSINESS TRENDS IN BANGLADESH
Cane based enterprise is one of the most flourished business in the northeastern region of Bangladesh. The purpose of the present study is to observe the pattern of production of cane based furniture in Sylhet city, iden...