Abstract
Our study employs an overlapping generations model in which the political powers of
different generations（the working generation and retired generations with and without children）determine the distribution of fiscal burden among the generations. We investigate the relationship among the extent of intergenerational altruism, political regimes, and intergenerational distribution of fiscal burden. Our numerical simulations show that the more the working generation cares about the utility of the retired generation, the more likely it is for an intergenerational coalition to be established. This coalition can make the working generation better off by lowering their tax rates. We also show that Demeny voting, which allows parents to vote on behalf of their children, requires a higher degree of altruism to decide on intergenerational coalition. However, Demeny voting can make both the working generation and the retired generation with children better off once it establishes the intergenerational coalition.
