Optimal factor income taxation in a neo-classical growth model with endogenous fertility

This note studies optimal taxation of income in a growth model with endogenous fertility proposed by Barro and Becker(1989). It is found that the optimal tax rate on capital income converges to zero after one transition period, and the government should not tax labor income in period 1 and thereafter. These results are obtained for a general period utility function.

Influence of the Consideration of Future Consequences on Financial Behavior: The Case of Japanese Individual Investors

We analyze the impact of the “consideration of future consequences” (CFC) on the amount of financial assets and the liabilities of individual investors by applying a Tobit model to data from a web-based survey. We find that impatient individuals with high CFC have fewer deposits and financial asset balances. We also examine the influence of the CFC-immediate (CFC-I) and CFC-future (CFC-F) sub-indicators often used in psychology as well as CFC on financial asset balances and liabilities. CFC-I show concern with immediate consequences and also an index related to ego depletion. We find that the higher the CFC-I, the lower the amount of deposits and financial asset balances. However, CFC-F is a sub-indicator designating lack of concern with future consequences; thus, the higher the CFC-F, the larger the debt