TY  - GEN
TI  - Population Aging, the Composition of Government Spending,and Endogenous Economic Growth in Politico-Economic Equilibrium
KW  - Demographics 
KW  -  Endogenous Economic Growth 
KW  -  Government Spending 
KW  -  Markov Perfect Equilibrium 
KW  -  Probabilistic Voting
Y1  - 2011///
AV  - public
ID  - heidok11612
A1  - Kuehnel, Johanna
UR  - https://archiv.ub.uni-heidelberg.de/volltextserver/11612/
N2  - This paper introduces a democratic voting process into an OLG economy in order to analyze the e ffects of a rising old-age dependency ratio on the composition of government spending and endogenous economic growth. Forward-looking agents vote each period on the public policy mix between productive government expenditure and public consumption spending that benefi ts the elderly. Population aging shifts political power from the young to the old. While this does not aff ect public productive expenditure, it leads to an increase in public spending on the elderly and a slowdown in economic growth. However, the overall e ffect on long-term economic growth is positive. This is due to reduced capital dilution or increased saving.
ER  -