Welfare Analysis of a Fiscal Reconstruction Policy in an Overlapping Generations Economy with Public Investment |
| |
Authors: | Jumpei Tanaka |
| |
Affiliation: | (1) Graduate School of Economics, Kobe University, 1-8-30 Suzaku Nara 631-0806, Japan (e-mail: 981d207e@yku.kobe-u.ac.jp), JP |
| |
Abstract: | Constructing an endogenously growing overlapping generations model with public investment, we examine the welfare effects of a fiscal reconstruction policy. In this paper we define a fiscal reconstruction policy as a policy where the government reduces its spending level without changing the tax revenue and allocates the surplus of the revenue to redeem public debt. We show that if government spending is not productive it is possible that a fiscal reconstruction policy improves the utilities of both the current and future generations, while if government spending is productive it can harm the utilities of both generations. Received February 26, 2002; revised version received July 8, 2002 Published online: February 17, 2003 |
| |
Keywords: | : overlapping generations, public investment, fiscal reconstruction. |
本文献已被 SpringerLink 等数据库收录! |
|