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Pensions, Education, and Growth: A Positive Analysis

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  • Tetsuo Ono

    () (Graduate School of Economics, Osaka University)

  • Yuki Uchida

    () (Graduate School of Economics, Osaka University)

Abstract

This study presents an overlapping generations model to capture the nature of the competition between generations regarding two redistribution policies, public education and public pensions. From a political economy viewpoint, we investigate the effects of population aging on these policies and economic growth. We show that greater longevity results in a higher pension-to-GDP ratio. However, an increase in longevity produces an initial increase followed by a decrease in the public education- to-GDP ratio. This, in turn, results in a hump-shaped pattern of the growth rate.

Suggested Citation

  • Tetsuo Ono & Yuki Uchida, 2014. "Pensions, Education, and Growth: A Positive Analysis," Discussion Papers in Economics and Business 14-37-Rev., Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Aug 2015.
  • Handle: RePEc:osk:wpaper:1437r
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    Cited by:

    1. Ono, Tetsuo & Uchida, Yuki, 2018. "Human capital, public debt, and economic growth: A political economy analysis," Journal of Macroeconomics, Elsevier, vol. 57(C), pages 1-14.
    2. Tetsuo Ono & Yuki Uchida, 2018. "Capital Income Taxation, Economic Growth, and the Politics of Public Education," Discussion Papers in Economics and Business 18-05, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    3. Tetsuo Ono, 2017. "Aging, Pensions, and Growth," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 73(2), pages 163-189, June.
    4. Tetsuo Ono & Yuki Uchida, 2018. "Political Economy of Taxation, Debt Ceilings, and Growth," Discussion Papers in Economics and Business 18-22, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    5. Edle von Gaessler, Anne & Ziesemer, Thomas, 2017. "Ageing, human capital and demographic dividends with endogenous growth, labour supply and foreign capital," MERIT Working Papers 043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. repec:aes:amfeco:v:46:y:2017:i:19:p:654 is not listed on IDEAS

    More about this item

    Keywords

    economic growth; population aging; public education; public pen-sions;

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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