01765cas a2200265 a 4500 AALejournalIMF008116 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451849004 1018-5941 BD-DhAAL BD-DhAAL Swagel, Phillip. The Aging of the Population and the Size of the Welfare State / Phillip Swagel, Efraim Sadka, Assaf Razin. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Data for the United States and countries in Western Europe indicate a negative correlation between the dependency ratio and both labor tax rates and the generosity of social transfers, after controlling for other factors that influence the size of the welfare state. This is despite the increased political clout of the dependent population implied by the aging of the population. This paper develops a model of intra-and inter-generational transfers and human capital formation which addresses this seeming puzzle. We show that with democratic voting, a higher dependency ratio can lead to lower taxes or less generous social transfers. Mode of access: Internet Razin, Assaf. Sadka, Efraim. IMF Working Papers; Working Paper ; No. 2002/068 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/068/001.2002.issue-068-en.xml IMF e-Library