Review of Behavioral Economics > Vol 12 > Issue 1

Grandchildren and Views about Consumption Tax

Eiji Yamamura, Department of Economics, Seinan Gakuin University, Japan, yamaei@seinan-gu.ac.jp
 
Suggested Citation
Eiji Yamamura (2025), "Grandchildren and Views about Consumption Tax", Review of Behavioral Economics: Vol. 12: No. 1, pp 97-127. http://dx.doi.org/10.1561/105.00000205

Publication Date: 23 Jan 2025
© 2025 E. Yamamura
 
Subjects
Behavioral economics,  Public policy,  Voting behavior
 
Keywords
JEL Codes: H23, J11, J13, J14
Consumption taxgrandparentsgrandchild
 

Share

Open Access

This is published under the terms of CC BY-NC.

In this article:
Introduction 
Testable Hypotheses 
Data 
Estimation Results 
Discussion 
Conclusions 
References 

Abstract

In Japan, an increase in the consumption tax rate, a measure of balanced public finance, reduces the inequality of the fiscal burden between present and future generations. This study estimates the effect of grandchildren on an older person’s view of consumption tax by using independently collected data. The results show that having grandchildren is positively associated with supporting an increase in the consumption tax. This implies that people of the older generation are likely to accept the tax burden to reduce the burden on their grandchildren. In other words, grandparents show intergenerational altruism.

DOI:10.1561/105.00000205