1 42
ID 40219
JaLCDOI
Sort Key
4
Title Alternative
Consumption-tax-financed fertility policy and persistent intergenerational inequality: A preliminary exploration
FullText URL
Author
Abstract
The paper incorporates into a standard two-period-lived overlapping generations model with Cobb-Douglas utility and Cobb-Douglas production technology a government that levies a tax on consumption and households that have an opportunity to choose the fertility rate. The government spends all the tax revenue to finance the policy aiming to increase the national birth rate. Each young household faces a binary choice between 'high fertility' and 'low fertility', depending on the level of the government’s expenditure on that policy. The government’s policy together with the fertility choice by the households can give rise to strong nonlinearity in the transition equation of the economy. Numerical simulations show that the economic system exhibits endogenous cyclical or chaotic fluctuations in fertility for a large set of values of consumption tax rates. It is also numerically shown that some (inappropriate) choice of the tax rate by the government can cause persistent intergenerational inequality.
Note
論説 (Article)
Publication Title
岡山大学経済学会雑誌
Published Date
2010-09-10
Volume
volume42
Issue
issue2
Publisher
岡山大学経済学会
Publisher Alternative
The Economic Association of Okayama University
Start Page
77
End Page
87
ISSN
0386-3069
NCID
AN00032897
Content Type
Journal Article
Related Url
http://www.e.okayama-u.ac.jp/gakkai/
OAI-PMH Set
岡山大学
language
日本語
Copyright Holders
岡山大学経済学会
File Version
publisher
NAID
Eprints Journal Name
oer