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On Age Distribution of Population, Government Expenditure and Fiscal Federalism

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  • Echevarria, Cruz A

Abstract

In this paper I build a simple model to analyze the consequences that population growth imposes on the relative needs of expenditure of governments in a fiscal federalism setup. I assume, first, that some government expenditure items can be classified according to the age of their recipient individuals and, second, that different levels of government are usually assigned different expenditure programs. The implication is that, for an initially given level of effective public good provision, changes in the size of population as well as in its age structure will influence the composition of public expenditure for different layers of administration in a different manner.

Suggested Citation

  • Echevarria, Cruz A, 1995. "On Age Distribution of Population, Government Expenditure and Fiscal Federalism," Journal of Population Economics, Springer;European Society for Population Economics, vol. 8(3), pages 301-313, August.
  • Handle: RePEc:spr:jopoec:v:8:y:1995:i:3:p:301-13
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    Cited by:

    1. Frank T. Denton & Byron G. Spencer, 1998. "Economic Costs of Population Aging," Quantitative Studies in Economics and Population Research Reports 339, McMaster University.
    2. Michael Hofmann & Gerhard Kempkes & Helmut Seitz, 2008. "Demographic Change and Public Sector Budgets in a Federal System," CESifo Working Paper Series 2317, CESifo Group Munich.
    3. Frank T. Denton & Byron G. Spencer, 1999. "Population Aging and Its Costs: A Survey of the Issues and Evidence," Department of Economics Working Papers 1999-03, McMaster University.
    4. Britta Baum & Helmut Seitz & Andrej Worobjew, 2002. "Der Einfluss der Alters- und Familienstrukturen auf die Ausgaben der Länder und Gemeinden," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 71(1), pages 147-162.
    5. Helmut Seitz & Dirk Freigang & Sören Högel & Gerhard Kempkes, 2007. "Die Auswirkungen der demographischen Veränderungen auf die Budgetstrukturen der öffentlichen Haushalte," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(2), pages 147-164, March.
    6. Frank T. Denton & Byron G. Spencer, 1999. "Population Aging and Its Economic Costs: A Survey of the Issues and Evidence," Quantitative Studies in Economics and Population Research Reports 340, McMaster University.
    7. Seitz, Helmut & Kempkes, Gerhard, 2005. "Fiscal Federalism and Demography," Dresden Discussion Paper Series in Economics 10/05, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    8. Joachim Ragnitz & Stefan Eichler & Beate Henschel & Harald Lehmann & Carsten Pohl & Lutz Schneider & Helmut Seitz & Marcel Thum, 2007. "Die demographische Entwicklung in Ostdeutschland : Gutachten im Auftrag des Bundesministeriums für Wirtschaft und Technologie," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 41.

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