Growth effects of annuities and government transfers in perpetual youth models

B-Tier
Journal: Journal of Mathematical Economics
Year: 2017
Volume: 72
Issue: C
Pages: 1-6

Authors (2)

Miyoshi, Yoshiyuki (not in RePEc) Toda, Alexis Akira (Emory University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We show that in overlapping generations endogenous growth models with uncertain lifetime, the introduction of government transfers always increases economic growth by crowding out the private annuity market and increasing accidental bequests. In particular, if the government imposes a flat-rate consumption tax (which is neutral to the consumption–saving margin), uses part of the tax revenue for unproductive purposes, and rebates the rest equally across agents as a lump-sum transfer, the economy grows faster and improves the welfare of future generations.

Technical Details

RePEc Handle
repec:eee:mateco:v:72:y:2017:i:c:p:1-6
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29