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Generational Conflict and Education Politics: Implications for Growth and Welfare

Author

Listed:
  • Yuki Uchida

    (Faculty of Economics, Seikei University)

  • Tetsuo Ono

    (Graduate School of Economics, Osaka University)

Abstract

This study considers the politics of public education and its impact on economic growth and welfare across generations. We employ probabilistic voting to demon- strate the generational con ict regarding taxes and spending, and show that aging results in a tax burden shift from the retired to the working generation, a reduction in public education spending, and ultimately in slowing down economic growth. We subsequently consider a legal constraint that aims to boost education spending: a spending oor for education. This constraint stimulates economic growth, but cre- ates a trade-off between current and future generations in terms of welfare. Finally, the quantitative implications of our results are explored by calibrating the model to the Japanese economy.

Suggested Citation

  • Yuki Uchida & Tetsuo Ono, 2018. "Generational Conflict and Education Politics: Implications for Growth and Welfare," Discussion Papers in Economics and Business 18-05-Rev., Osaka University, Graduate School of Economics, revised Nov 2018.
    • Handle: RePEc:osk:wpaper:1805r
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    References listed on IDEAS

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    Cited by:

    1. Minoru Watanabe, 2022. "Capital income taxation and public debt in an endogenous fertility model," Discussion Papers 2209, Graduate School of Economics, Kobe University.

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    More about this item

    Keywords

    Public education; Economic growth; Capital income tax; Proba- bilistic voting;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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