2011 Fiscal Year Final Research Report

Dynamic political economy analysis of environmental and social security policies

Research Project

Project/Area Number	20730208
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Single-year Grants
Research Field	Public finance/Monetary economics
Research Institution	Osaka University
Principal Investigator	ONO Tetsuo 大阪大学, 大学院・経済学研究科, 准教授 (50305661)
Project Period (FY)	2008 – 2011
Keywords	政治経済学 / 社会保障 / 所得再分配
Research Abstract	The purpose of this study is to analyze the politics of environmental and social security policies in the presence of intra-generational and inter-generational conflicts of interests. The analysis leads to the following results. First, there are multiple political equilibria. Which equilibrium arises depends on the expectations of agents. Second, low-income agents prefer a low, rather than a high tax burden when they have hope of upward mobility in the future. Third, the intergenerational conflict over environmental and social security policies results in an inefficient allocation in terms of environmental quality and old-age social security.