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JEL classification: C68 D9 E62 H5 H6 H55 Keywords:Computable general equilibrium (CGE) model Overlapping generations (OLG) Aging Immigration a b s t r a c t Shimasawa, Manabu, and Oguro, Kazumasa-Impact of immigration on the Japanese economy: A multi-country simulation modelTo quantify the impacts of immigration and fiscal reconstruction on the Japanese economy, we present a dynamic computable general equilibrium OLG model with an overlapping generations structure. We use a total of 16 countries and regions, both including those that are industrialized, such as Japan, the US, and the EU, and developing countries, such as China, Brazil, the Philippines, and Peru.Our simulation results show that a permanent immigration flows of 150,000 will improve the Japanese economy and the welfare of current and future generations. On the other hand, a standalone increase in the consumption tax will not improve long-run welfare.The results indicate that substantially increased inflows of working-age immigrants would alleviate the need for future fiscal reform and also help to dramatically reduce the public pension burden on the working generations.

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In this paper, we present an OLG simulation model with endogenous fertility to analyze the relationship between child benefit and fiscal burden. Our simulation results show that expansion of the child benefit will improve the welfare of current and future generations. On the other hand, our findings show that we cannot expect a significant long-term improvement in welfare solely from the increase of the consumption tax. If both the fiscal sustainability and the improvement of the welfare of current and future generations are requirements, we will need a policy-mix that includes both child benefit expansion and additional fiscal reform