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Politics of Public Education and Pension with Endogenous Fertility

Author

Listed:
  • Yuki Uchida

    (Faculty of Economics, Seikei University)

  • Tetsuo Ono

    (Graduate School of Economics, Osaka University)

Abstract

Implications of increased life expectancy on parental fertility decisions and subsequent shifts in political influence between younger and older generations carry significant consequences for government policies concerning education and pension. This study introduces an overlapping generations growth model incorporating these effects, qualitatively indicating that increased life expectancy correlates with lower fertility rates, decreased education expenditure-GDP ratio, and increased pension benefit-GDP ratio. A model simulation evaluates the impact of the projected increase in life expectancy until 2100 on four country groups: synthetic rich OECD, synthetic rich OECD Europe, Japan, and the United States. The findings demonstrate similar trends as in the qualitative analysis, yet growth rates are projected to vary significantly across regions and countries due to differing life expectancy increases.

Suggested Citation

  • Yuki Uchida & Tetsuo Ono, 2024. "Politics of Public Education and Pension with Endogenous Fertility," Discussion Papers in Economics and Business 24-07, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:2407
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fertility; Public Pension; Public Education; Probabilistic Voting; Overlapping Generations;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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