Dependent Children and Aged Parents: Funding Education and Social Security in an Aging Economy

Posted: 21 Nov 2002

See all articles by Patricia S. Pollard

Patricia S. Pollard

Federal Reserve Bank of St. Louis, Research Division

Rowena Pecchenino

NUI Maynooth - Department of Economics

Abstract

In the last few decades in the United States birth rates have declined and longevity has risen while productivity growth has slowed. Given such changes, the increasing burden of funding programs for the elderly is likely to shift resources away from the young and toward the elderly. This paper uses an overlapping generations framework to examine the effects of tax policies on an aging economy. We find that if the quality of the education system is sufficiently high then raising the education tax rate and subsequently lowering the social security tax rate enhances growth and welfare.

Suggested Citation

Pollard, Patricia S. and Pecchenino, Rowena, Dependent Children and Aged Parents: Funding Education and Social Security in an Aging Economy. Available at SSRN: https://ssrn.com/abstract=313591

Patricia S. Pollard (Contact Author)

Federal Reserve Bank of St. Louis, Research Division ( email )

411 Locust St
P.O. Box 442
St. Louis, MO 63011
United States
314-444-8557 (Phone)
314-444-8731 (Fax)

Rowena Pecchenino

NUI Maynooth - Department of Economics ( email )

County Kildare
Ireland
35317083751 (Phone)
35317083934 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
760
PlumX Metrics