Political economy of social security: household composition, myopia, and borrowing constraint

2014 Fiscal Year Final Research Report

• Project/Area Number: 24530346
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Public finance/Monetary economics
• Research Institution: Osaka University
• Principal Investigator: TETSUO Ono 大阪大学, 経済学研究科(研究院), 教授 (50305661)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 借入制約 / 経済成長 / 投票 / 人的資本 / 社会保障 / 公教育

Outline of Final Research Achievements

In this project, I examined three issues. Firstly, I analyzed how a change in the household composition affects social security policy. In particular, I focused on the borrowing constraint of low-income households, and its impact on their preferences for social security. Secondly, I developed a politico-economic model of economic growth and social security, and showed how population aging affects the political decision on fiscal policy, and how it in turn affects economic growth. Thirdly, I added public education into the above-mentioned model as an alternative redistribution policy, and showed the effect of population aging on the allocation of tax revenue between the two redistributive policies.

Free Research Field

政治経済学