Considerations for Policy Decisions Involving Multiple Generations: An Examination Through an Economic Experiment on Fiscal Policy

As a methodology to encourage cooperation, this chapter discusses the function of deliberation. ThroughDeliberation an experiment in which people are asked to select a fiscal policy, this chapter reveals what should be taken into account in policy decisions involving multiple generations. This chapter points out that policy selections do not necessarily depend solely on personal interests, but that consideration of the interests of society as a whole, and of immediate descendants play a certain role. The so-called “silver democracySilver democracy theory” is overemphasized. The function of deliberationDeliberation is verified by an experiment. While deliberation among the present generation alone does not necessarily promote desirable policy decisions, the policy preferences of the present generation can be changed through deliberation with the imaginary future generationsImaginary future generation (IFGs) (endogenization of the present generation’s preferences). Appendix 4.1 clarifies what the IFGs say in deliberations. Appendix 4.2 examines the nature of fiscal policy as an intergenerational issue.