We examine how subsidy policies to support child-rearing affect the fertility rate in a textbook general equilibrium overlapping generations model extended to account for endogenous fertility decisions of individuals. It is shown the counter-intuitive result that increasing the child grant may actually reduce the long-run fertility rate.
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Article provided by Economics Bulletin in its journal Economics Bulletin.
Volume (Year): 10 (2007) Issue (Month): 20 () Pages: 1-10 Download reference. The following formats are available: HTML,
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Handle: RePEc:ebl:ecbull:v:10:y:2007:i:20:p:1-10
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Find related papers by JEL classification: J1 - Labor and Demographic Economics - - Demographic Economics H2 - Public Economics - - Taxation, Subsidies, and Revenue
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