Intergenerational policies, public debt, and economic growth: A politico-economic analysis

• 成果类型: Article
• 署名作者: Arai, Real; Naito, Katsuyuki; Ono, Tetsuo
• 署名单位: Kochi University Technology; University of Osaka
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2018.08.006
• 发表日期: 2018
• 页码: 39-52
• 关键词: public debt; probabilistic voting; Markov perfect equilibrium; Economic growth

摘要

This study presents a two-period overlapping-generations model with endogenous growth. In each period, the government representing young and old generations provides a public good financed by labor income taxation and public debt issuance, and the government's policies are determined by probabilistic voting. Increased political power of the old lowers economic growth. A debt-ceiling rule is considered to resolve the negative growth effect, but it creates a trade-off between generations in terms of welfare. (C) 2018 Elsevier B.V. All rights reserved.