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Financing Elderly Care Service Subsidies horizontally differentiated duopoly

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  • Masaya Yasuoka

    (School of Economics, Kwansei Gakuin University)

Abstract

This paper presents consideration of how a subsidy for the elderly care services should be financed in terms of income growth and social welfare. An increase in the tax burden for older people and firm with a decrease in the tax burden for young people can raise the income growth rate. However, the policy to decrease the unemployment to increase tax revenue by virtue of an increase in labor input can raise the income growth rate if the unemployment rate is low. Even if these tax systems increase the income growth rate, social welfare can not always be pulled up because an increase in the tax burden for older people worsens the welfare of older people.

Suggested Citation

  • Masaya Yasuoka, 2014. "Financing Elderly Care Service Subsidies horizontally differentiated duopoly," Discussion Paper Series 122, School of Economics, Kwansei Gakuin University, revised Oct 2014.
    • Handle: RePEc:kgu:wpaper:122
    as

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    File URL: http://192.218.163.163/RePEc/pdf/kgdp122.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Elderly care services; Tax system; Endogenous growth;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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