2011 Fiscal Year Final Research Report

Simulation Analysis of Inter-and Intra-generational Redistributions under the Democratic Public Policy Decision

Research Project

Project/Area Number	21730250
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Single-year Grants
Research Field	Public finance/Monetary economics
Research Institution	Nihon University (2010-2011) Niigata University (2009)
Principal Investigator	KAWADE Masumi 日本大学, 経済学部, 准教授 (00361890)
Project Period (FY)	2009 – 2011
Keywords	財政学
Research Abstract	This project investigates the consequence of the redistribution policies with public debts determined by current generations in order to ease intra-generational economic disparity. The simulation analyses are conducted, and their results show that short-run stimulus tax-cut and redistributive income transfer are favorable only to a part of current generations, and not to the others. And a temporary increase of the number of birth improves the welfare of current generations, but it exacerbates that of the future generations. Furthermore, narrowing the intra-generational economic gaps of the current generations reduces that of future generations slightly, but it also results in widening the inter-generational transfer from the future to the current. Therefore the correction of current generations' disparities leads to the redistribution from the future to the current generations, rather than supporting current and future low-income households.