Transition to an Aging Japan: Public Pension, Savings, and Capital Taxation

Kato, Ryuta Ray

doi:10.1006/jjie.1998.0404

Cited by 21 publications

(15 citation statements)

References 5 publications

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“…2 See Homma et al (1987), Kato (1998Kato ( , 2002, Shimasawa (2001, 2003), Uemura (2002), Okamoto (2005), Ihori et al (2006. 3 In our model, for the reason that detailed data of capital tax in some developing regions were unavailable, capital tax variables are assumed to be equal to 20% across all regions.…”

Section: Simulation Resultsmentioning

confidence: 99%

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Impact of immigration on the Japanese economy: A multi-country simulation model

Shimasawa

Oguro

2010

Journal of the Japanese and International Economies

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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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Section: Simulation Resultsmentioning

confidence: 99%

“…A vast number of studies have applied the OLG model to the problem of aging in Japan, such as Homma et al (1987), Kato (1998Kato ( , 2002, Shimasawa (2001, 2003), Okamoto (2005), and Ihori et al (2006). In each of these models, the life-cycle hypothesis of consumption serves a crucial role, just as in the A-K type OLG model.…”

Section: Introductionmentioning

confidence: 97%

Impact of immigration on the Japanese economy: A multi-country simulation model

Shimasawa

Oguro

2010

Journal of the Japanese and International Economies

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“…Our two-period OLG model seems to be biased towards emphasizing those effects, since it assumes that the young has only labor income and the old has only capital income, and it neglects the labor market where different cohorts compete with each other. Actually, some Auerbach-Kotlikoff-style simulation studies on the transition path to an aging Japan, such as Kato (1998) and Uemura (2001), find mixed effects of a cohort size on the utility assuming a closed economy. A more careful analysis with a multi-period OLG models are needed in order to correctly assess the magnitude of the factor-price effects.…”

Section: Discussionmentioning

confidence: 99%

Social security and trust fund management

Oshio

2004

Journal of the Japanese and International Economies

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“…when A s is negative), it is assumed that the government helps them financially at a rate t r . On the other hand, Iwamoto (1990) and Kato (1998) imposed a liquidity constraint (A s (x) ! 0) so that households do not have negative assets.…”

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confidence: 99%

Simulating fundamental tax reforms in an aging Japan

Okamoto

2005

Economic Systems Research

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This paper studies in a quantitative way the macroeconomic and welfare effects of introducing progressive expenditure taxation, in a situation of the aging of the Japanese population. It undertakes a simulation analysis taking account of the general equilibrium effects of intragenerational inequality, which increases with a transition to an aging society. The simulation results suggest that progressive expenditure taxation has advantages over progressive labor income taxation on the grounds of efficiency and equity. Thus, a shift to progressive expenditure taxation can overcome the large welfare loss that would occur under the current tax system as Japan ages.Aging population, tax reform, life-cycle general equilibrium model, simulation,

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Transition to an Aging Japan: Public Pension, Savings, and Capital Taxation

Cited by 21 publications

References 5 publications

Impact of immigration on the Japanese economy: A multi-country simulation model

Impact of immigration on the Japanese economy: A multi-country simulation model

Social security and trust fund management

Simulating fundamental tax reforms in an aging Japan

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