Abstract
This study formulated a dynamic computable general equilibrium model with overlapping generations that can assess the intergenerational benefit distribution of infrastructure investment policy. This study applied the model to Japan in order to analyze the infrastructure investment policy and life-extension policy. This study derived following implications from the analyses. Infrastructure investment has a problem of intergeneration welfare's trade-off where the increased investment is beneficial for the future generations while the current generations make a loss. Intergenerational income transfer through public bond can efficiently mitigate this problem, but it temporally increases the outstanding bonds. Life-extension policy brings benefit to wider range of generations, including current generations. Therefore, the compensation to the generation, which make a loss from the life-extension policy, can be conducted within the current generations.
