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| Yusuke Miyake |
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| ''Childcare Support and Public Capital in an Ultra-Declining Birthrate Society'' |
| ( 2021, Vol. 41 No.2 ) |
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| This paper analyzes whether public capital investment or childcare support maximize the growth rate in an ultra-declining birth rate society using a labor-augmented model with public capital. We clarify the global stability of the private capital-public capital ratio in the steady state. In addition, we analyze the effect of increasing the expenditure share of tax revenue on economic growth. The result of this analysis shows that an increased share of public capital investment brings higher economic growth. This means that if all tax revenue is allocated to public capital investment, the growth rate will be maximized. |
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| Keywords: Public capital investment・ Childcare support・ Income tax |
JEL: E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General
H8 - Public Economics: Miscellaneous Issues: General |
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| Manuscript Received : Nov 29 2020 | | Manuscript Accepted : Apr 09 2021 |
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