The optimal capital income tax rate has been shown to be nonzero in overlapping generations (OLG) models, as it helps redistribute income between cohorts and individuals with different labor supply elasticities and individual productivities. We show in a medium-scale OLG model that the optimal...

In many countries, the regulations governing pension systems, hiring procedures, and job contracts differ between the public and private sectors. Public sector employees tend to have longer tenures and higher wages compared to workers in the private sector. As such, social security reforms can...

Fertility rates have declined dramatically across almost all highincome countries over the past decades. This has raised concerns about future economic prospects. Indeed, fully- and semi-endogenous growth models imply that a shrinking workforce would lead to declining income growth and perhaps...

This article aims to develop the theoretical overlapping generation models with the unstable healthcare system due to the problem of missing trading markets between young and old generations. The main healthcare system in Thailand is Universal Coverage (UC) which covers around 48 million Thai...

Long-term projections are the bedrock of any analysis looking at the sustainability of public finances. This paper computes the changes in economic growth in individual European Union (EU) countries needed for government debt-to-GDP ratios to stay on their baseline trajectories (taken from the...

We study all theories of justice that disentangle ethical views on intergenerational discounting and intergenerational inequality. Each “modular” social welfare function is uniquely identified by a time-discounting function—capturing attitudes toward time—and an aggregator function—...

I study the effect of educational policy in the host economy on human capital accumulation and growth. The analysis is performed in a two-country growth model with endogenous fertility. I show that providing additional free educational services for immigrant children can increase the...

This paper develops a macroeconomic model that combines an incomplete-markets overlapping-generations economy with a job ladder featuring sequential wage bargaining, endogenous search effort of employed and non-employed workers, and differences in match quality. The calibrated model offers a...

This paper develops a macroeconomic model that combines an incomplete-markets overlapping-generations economy with a job ladder featuring sequential wage bargaining, endogenous search effort of employed and non-employed workers, and differences in match quality. The calibrated model offers a...

To meet the needs of a broad set of internal and external stakeholders now and into the future the Australian Treasury maintains a significant macroeconomic modelling capability. Treasury's current inhouse capability is similar to that of the US Congressional Budget Office (CBO) and the Joint...

The interrelationship between economic growth, efficient use of natural resources, and sustainability has been of great interest to economists, researchers and policy makers. Knowledge of actual causality direction between sustainability, efficiency and growth has important implications for...

Korea's National Pension Fund (NPF) is projected to be in deficit by the 2040s and exhausted by the 2050s. Increasing contribution rates may be unaffordable, prompting consideration of structural reforms, particularly shifting from a defined benefit (DB) to a defined contribution (DC) system....

We present an open economy growth model incorporating various elements of fiscal policy, including government expenditure on education and public capital (infrastructure), budget deficit, internal and external public debt, public consumption, and four tax rates. This detailed description of...

In this paper, I analyze detailed data on intergenerational transfers in 4 countries (China, India, Japan, and the United States) from the "Japan Household Panel Survey on Consumer Preferences and Satisfaction (JHPS-CPS)" which has been conducted by the Institute of Social and Economic Research...