
doi: 10.2139/ssrn.6074450
Population aging alters the political landscape, shifting fiscal policy toward redistribution and away from growth. This paper develops a dynamic overlapping generations model in which the tax rate and transfers are determined by the median voter. Unlike standard models, we assume older voters internalize future costs by caring about the utility of future generations. We show that aging still increases redistribution and reduces savings, but altruism mitigates political distortion relative to the purely selfish case. Compared to a Social Planner benchmark, majority voting remains inefficient, though the gap narrows as altruism rises. Our analysis provides a theoretical foundation for understanding the interaction between aging, politics, and growth, and highlights institutional and cultural factors that influence long-run outcomes.
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