Tax policy under the "generational election system"

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This chapter investigates the effects of introducing the “generational election system” proposed by Ihori and Doi (Nihon-seiji no keizai-bunseki (Economic analysis of Japanese politics), Bokutaku-Sha, Tokyo, 1998). The generational election system (or the election district by generation) consists of election districts divided by not only region but also generation. In industrial countries, intergenerational conflicts of interest are large at present. In particular, the older generation has more political power because of aging and fewer children. In an electoral system that consists of election districts divided only by region, conflicts of interest among regions can be dealt with in the Congress, but intergenerational conflicts are buried in each district because the opinions of older people dominate those of younger people. Therefore, this chapter analyzes the effects of introducing the generational election system using an overlapping generations model. The results of the voting equilibrium show that the preferred policy of the younger generation can be better represented in the generational election system compared with the current majoritarian system. Furthermore, the selected policy does not depend on the turnout rate of the younger generation. These results suggest that introducing the generational election system benefits both the younger and future generations.

Original languageEnglish
Title of host publicationAdvances in Japanese Business and Economics
PublisherSpringer
Pages145-165
Number of pages21
DOIs
Publication statusPublished - 2015

Publication series

NameAdvances in Japanese Business and Economics
Volume8
ISSN (Print)2197-8859
ISSN (Electronic)2197-8867

Keywords

  • Generational Election System
  • Intergenerational equity
  • Tax policy
  • Turnout rate
  • Voting equilibrium

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Economics and Econometrics
  • Finance

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