Ono, Tetsuo - Graduate School of Economics, Osaka University - 2014
, pension and public goods. To capture the forward-looking behavior of voters, we characterize a Markov-perfect political equi … that (i) as the population ages, the pension- to-GDP ratio and the growth rate of capital increase, but the public goods …-to-GDP ratio decreases and (ii) the pension-to-GDP and public goods-to-GDP ratios are too high and the growth rate too low from the …