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A note on endogenous fertility, child allowances and poverty traps

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  • Fanti, Luciano
  • Gori, Luca

Abstract

This study analyses how capital accumulation and fertility react to a child allowance policy in an overlapping generations model of growth with endogenous fertility. Multiple equilibria are shown to exist depending on the size of the child allowance.

Suggested Citation

  • Fanti, Luciano & Gori, Luca, 2012. "A note on endogenous fertility, child allowances and poverty traps," Economics Letters, Elsevier, vol. 117(3), pages 722-726.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:3:p:722-726
    DOI: 10.1016/j.econlet.2011.12.091
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    References listed on IDEAS

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    1. Kraay, Aart & Raddatz, Claudio, 2007. "Poverty traps, aid, and growth," Journal of Development Economics, Elsevier, vol. 82(2), pages 315-347, March.
    2. Bas Groezen & Lex Meijdam, 2008. "Growing old and staying young: population policy in an ageing closed economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 573-588, July.
    3. Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 458-474, April.
    4. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-387, June.
    5. Patricia Apps & Ray Rees, 2004. "Fertility, Taxation and Family Policy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 745-763, December.
    6. Fanti, Luciano & Gori, Luca, 2010. "Child policy solutions for the unemployment problem," Economics Letters, Elsevier, vol. 109(3), pages 147-149, December.
    7. Fanti, Luciano & Gori, Luca, 2009. "Population and neoclassical economic growth: A new child policy perspective," Economics Letters, Elsevier, vol. 104(1), pages 27-30, July.
    8. Michele Boldrin & Larry E. Jones, 2002. "Mortality, Fertility, and Saving in a Malthusian Economy," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 775-814, October.
    9. Momota, Michiko, 2000. "The gender gap, fertility, subsidies and growth," Economics Letters, Elsevier, vol. 69(3), pages 401-405, December.
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    Citations

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    Cited by:

    1. Coppier, Raffaella & Sabatini, Fabio & Sodini, Mauro, 2021. "Social Capital, Human Capital, And Fertility," Macroeconomic Dynamics, Cambridge University Press, vol. 25(3), pages 632-650, April.
    2. Masaya Shintani & Masaya Yasuoka, 2022. "Fertility, Inequality and Income Growth," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(1), pages 29-48, March.
    3. Cui, Xiaodong & Chang, Ching-Ter, 2020. "How life expectancy affects welfare in a Diamond-type overlapping generations model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 555(C).
    4. Miyazaki, Koichi, 2016. "Student loans, fertility, and economic growth," MPRA Paper 71604, University Library of Munich, Germany.
    5. Chen, Hung-Ju, 2013. "Child Allowances, Educational Subsidies and Economic Growth," MPRA Paper 51279, University Library of Munich, Germany.
    6. Minoru Watanabe, 2023. "Robot tax and endogenous fertility in an Overlapping Generations Model," Discussion Papers 2307, Graduate School of Economics, Kobe University.
    7. Masaya Shintani & Masaya Yasuoka, 2021. "Child Care Policy and Capital Mobility," Economics Bulletin, AccessEcon, vol. 41(2), pages 398-404.
    8. Wang, Leran, 2021. "Fertility, Imperfect Labor Market, and Notional Defined Contribution Pension," The Journal of the Economics of Ageing, Elsevier, vol. 20(C).
    9. Koka, Katerina & Rapallini, Chiara, 2023. "Italy’s demographic trap: Voting for childcare subsidies and fertility outcomes," European Journal of Political Economy, Elsevier, vol. 76(C).
    10. Chen, Hung-Ju, 2015. "Child allowances, educational subsidies and occupational choice," Journal of Macroeconomics, Elsevier, vol. 44(C), pages 327-342.
    11. Aso Hiroki & Ueshina Mitsuru, 2023. "Fertility, fiscal deficit and sustainability of public debt in an endogenous growth model," Economics and Business Review, Sciendo, vol. 9(3), pages 224-238, October.
    12. Koichi Miyazaki, 2013. "Pay-as-you-go social security and endogenous fertility in a neoclassical growth model," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 1233-1250, July.

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    More about this item

    Keywords

    Child allowance; Endogenous fertility; OLG model; Poverty trap;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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