eprintid: 11612
rev_number: 27
eprint_status: archive
userid: 1
dir: disk0/00/01/16/12
datestamp: 2011-02-17 17:22:59
lastmod: 2016-01-12 03:41:01
status_changed: 2012-08-15 08:57:46
type: workingPaper
metadata_visibility: show
creators_name: Kuehnel, Johanna
title: Population Aging, the Composition of Government Spending,and Endogenous Economic Growth in Politico-Economic Equilibrium
ispublished: pub
subjects: 330
divisions: 181000
keywords: Demographics , Endogenous Economic Growth , Government Spending , Markov Perfect Equilibrium , Probabilistic Voting
abstract: 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.
abstract_translated_lang: eng
class_scheme: jel
class_labels: D72, E62, O41
date: 2011
date_type: published
id_scheme: DOI
id_number: 10.11588/heidok.00011612
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0510
ppn_swb: 1650757417
own_urn: urn:nbn:de:bsz:16-opus-116120
language: ger
bibsort: KUEHNELJOHPOPULATION2011
full_text_status: public
citation:   Kuehnel, Johanna  (2011) Population Aging, the Composition of Government Spending,and Endogenous Economic Growth in Politico-Economic Equilibrium.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/11612/1/Kuehnel_2011_dp510.pdf