@techreport{oai:shiga-u.repo.nii.ac.jp:00008980,
 author = {Kato, Ryuta Ray},
 issue = {No. 74},
 month = {Aug},
 note = {Technical Report, This paper tires to examine the effects of government deficits, public investment, public
capital and public pension policies on the tax burden, capital accumulation and economic
welfare in the transition to an aging Japan by applying a simulated method in the expanded
life cycle general equilibrium growth model.
One of the main results of this paper is that the highest income, thus the highest
economic growth, is achieved when the future government deficits are the highest. However,
such a policy to achieve the highest economic growth with the highest government deficits
is necessarily not most preferable for future generations, since disposable income under
this policy is necessarily not the highest due to the reason that a drastic increase in a
consumption tax rate has to be followed in the future to finance the huge amount of interest
payments. Thus, only targeting high economic growth would mislead us as to the economic
policy. The implication of this result is that a policy to reduce the future government
deficits is most preferable for almost all generations, even though a cut in the future deficits
must be followed by a decrease in public investment, thus a decrease in the future public
capital.
By proposing three different scenarios regarding the future government deficit policy,
this paper also presents numerical results of the effects on future consumption tax rates,
tax burdens, social security burdens, and the generational accounting through the existing
pay-as-you-go public pension scheme.
The effects of an introduction of technological progress as well as of inefficiency in public
investment will also be examined numerically., 滋賀大学経済学部Working Paper, No. 74, pp. 1-[66]},
 title = {Government Deficit, Public Investment and Public Capital in the Transition to an Aging Japan},
 year = {2002}
}