Advanced Search
MyIDEAS: Login

Child Benefits and Welfare for Current and Future Generations: Simulation Analyses in an Overlapping-Generations Model With Endogenous Fertility

Contents:

Author Info

  • 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)

Registered author(s):

    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.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.aessweb.com/download.php?id=1842
    Download Restriction: no

    File URL: http://www.aessweb.com/archives.php?m=April&id=1842
    Download Restriction: no

    Bibliographic Info

    Article provided by Asian Economic and Social Society in its journal Asian Economic and Financial Review.

    Volume (Year): 3 (2013)
    Issue (Month): 4 (April)
    Pages: 490-511

    as in new window
    Handle: RePEc:asi:aeafrj:2013:p:490-511

    Contact details of provider:
    Postal: Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan
    Web page: http://www.aessweb.com/

    Related research

    Keywords: Overlapping-generations model; child benefit; endogenous fertility; theorem of zero capital tax;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Kenneth L. Judd, 1982. "Redistributive Taxation in a Simple Perfect Foresight Model," Discussion Papers 572, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    2. Chamley, Christophe, 1986. "Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives," Econometrica, Econometric Society, vol. 54(3), pages 607-22, May.
    3. Atkinson, A. B. & Stiglitz, J. E., 1972. "The structure of indirect taxation and economic efficiency," Journal of Public Economics, Elsevier, vol. 1(1), pages 97-119, April.
    4. Cremer, Helmuth & Gahvari, Firouz, 1995. "Uncertainty, Optimal Taxation and the Direct versus Indirect Tax Controversy," Economic Journal, Royal Economic Society, vol. 105(432), pages 1165-79, September.
    5. Whitehouse, Edward, 2007. "Pensions panorama: retirement-income systems in 53 countries," MPRA Paper 14797, University Library of Munich, Germany.
    6. Kazumasa, Oguro & Junichiro, Takahata & Manabu, Shimasawa, 2009. "Child Benefit and Fiscal Burden: OLG Model with Endogenous Fertility," MPRA Paper 16132, University Library of Munich, Germany.
    7. Atkinson, A. B. & Stiglitz, J. E., 1976. "The design of tax structure: Direct versus indirect taxation," Journal of Public Economics, Elsevier, vol. 6(1-2), pages 55-75.
    8. Emmanuel Saez, 2000. "The Desirability of Commodity Taxation under Non-Linear Income Taxation and Heterogeneous Tastes," NBER Working Papers 8029, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:2013:p:490-511. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Qazi Muhammad Imran).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.