Fertility, Growth, and Public Investments in Children
AbstractIn this paper, it is shown how subsidies for education and for the number of children affect economic growth, fertility, and welfare in an endogenous growth model with altruistic agents. Subsidizing education has not only a direct positive effect on growth but also an indirect positive effect on growth through reducing fertility. After some finite periods, future generations will gain in welfare in the education-subsidy regime. In contrast, subsidizing the number of children increases fertility, depresses growth, and reduces all generations' welfare.
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Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 30 (1997)
Issue (Month): 4 (November)
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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
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- Yasuoka, Masaya & Miyake, Atsushi, 2013. "Public debt, child allowances and pension benefits with endogenous fertility," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 7(11), pages 1-25.
- Leonid Azarnert, 2010. "Free education, fertility and human capital accumulation," Journal of Population Economics, Springer, vol. 23(2), pages 449-468, March.
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