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Aging, Political Distortion, and Growth: A Dynamic General Equilibrium Analysis with Altruistic Median Voter

Authors: Manabu Shimasawa;

Aging, Political Distortion, and Growth: A Dynamic General Equilibrium Analysis with Altruistic Median Voter

Abstract

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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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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