Ziramba, Emmanuel2008-12-012008-12-012008-08Gupta, R & Ziramba, E 2008, 'Optimal public policy with endogenous mortality', University of Pretoria, Department of Economics, Working paper series, no. 2008-29. [http://web.up.ac.za/default.asp?ipkCategoryID=736&sub=1&parentid=677&subid=729&ipklookid=3]http://hdl.handle.net/2263/8156Using a monetary pure-exchange overlapping generations model, where the probability of survival of the young agents depends upon share of government expenditure on health, education and infrastructure, we analyze the welfare-maximizing policy mix between explicit and implicit taxation. We show that increases in the survival probability lead to an increase in the reliance on seigniorage as a welfare maximizing outcome. However, for our results to hold, the seigniorage tax base must be large enough for the benevolent planner to use the inflation tax.enUniversity of Pretoria, Department of EconomicsMonetary pure exchange overlapping generations modelProbability of survivalWelfare maximizing policy mixPublic welfare -- FinanceSeigniorage (Finance)Working Paper