Transition to an aging Japan: Public pension, savings, and capital taxation

This paper examines the effects of public pension policies on savings and economic welfare in the transition to an aging Japan by applying a Simulated method in the expanded life cycle growth model. It also places a special emphasis on the fact that interest income taxation produces a higher level of utility of younger generations (born after the beginning of the 1970s) than does consumption taxation, both of which are taxation schemes financing the public pension scheme in Japan. (C) 1998 Academic Press.