  In Japan, the increase in the consumption tax rate, a measure of balanced
public finance, reduces the inequality of fiscal burden between the present and
future generations. This study estimates the effect of grandchildren on an
older person's view of consumption tax, using independently collected data. The
results show that having grandchildren is positively associated with supporting
an increase in consumption tax. Further, this association is observed strongly
between granddaughters and grandparents. However, the association between
grandsons and grandparents depends on the sub-sample. This implies that people
of the old generation are likely to accept the tax burden to reduce the burden
on their grandchildren, especially granddaughters. In other words, grandparents
show intergenerational altruism.
