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Fertility, Growth, and Public Investments in Children

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  • Jie Zhang

Abstract

In 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 Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 30 (1997)
Issue (Month): 4 (November)
Pages: 835-43

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Handle: RePEc:cje:issued:v:30:y:1997:i:4:p:835-43

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Cited by:
  1. Fanti, Luciano & Gori, Luca, 2011. "Child policy ineffectiveness in an overlapping generations small open economy with human capital accumulation and public education," Economic Modelling, Elsevier, vol. 28(1), pages 404-409.
  2. Leonid Azarnert, 2010. "Free education, fertility and human capital accumulation," Journal of Population Economics, Springer, vol. 23(2), pages 449-468, March.
  3. Zhang, Jie & Casagrande, Richard, 1998. "Fertility, growth, and flat-rate taxation for education subsidies," Economics Letters, Elsevier, vol. 60(2), pages 209-216, August.
  4. Papagni, Erasmo, 2006. "Household borrowing constraints, fertility dynamics, and economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 30(1), pages 27-54, January.
  5. 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.
  6. Megumi Mochida, 2005. "Child Allowances, Fertility, and Uncertain Lifetime," Discussion Papers in Economics and Business 05-11, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  7. Ko Shakuno, 2014. "Public education, endogenous fertility and economic growth," TERG Discussion Papers 319, Graduate School of Economics and Management, Tohoku University.
  8. Herbertsson, Tryggvi Thor, 2003. "Accounting for human capital externalities with an application to the Nordic countries," European Economic Review, Elsevier, vol. 47(3), pages 553-567, June.
  9. Zhang, Junsen & Zhang, Jie & Lee, Ronald, 2001. "Mortality decline and long-run economic growth," Journal of Public Economics, Elsevier, vol. 80(3), pages 485-507, June.

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