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Public provision of private child goods

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  • Kimura, Masako
  • Yasui, Daishin
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    Abstract

    This paper analyzes the public provision of private goods for children in a politico-economic model with endogenous fertility. The government provides every child with goods that can also be purchased by parents in private markets, and the level of provision is determined by majority rule. Households with many children benefit from the public provision more than those with fewer children; thus, a political conflict arises between them. The distribution of the number of children across households, which is a crucial factor for determining which group is politically dominant, is endogenously determined by households' fertility decision. The sequential interaction between fertility and political decisions might lead to multiple equilibria: equilibrium with high fertility and low-private/public-spending ratio and equilibrium with low fertility and high-private/public-spending ratio. Our model could explain the large differences in fertility and structure of child-related spending across countries.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Public Economics.

    Volume (Year): 93 (2009)
    Issue (Month): 5-6 (June)
    Pages: 741-751

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    Handle: RePEc:eee:pubeco:v:93:y:2009:i:5-6:p:741-751

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    Web page: http://www.elsevier.com/locate/inca/505578

    Related research

    Keywords: Education Fertility Publicly provided private goods;

    References

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    1. David de la Croix & Matthias Doepke, 2001. "Inequality and Growth: Why Differential Fertility Matters," UCLA Economics Working Papers 803, UCLA Department of Economics.
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    19. Blomquist, S. & Christiansen, V., 1995. "Topping Up of Opting Out? The Optimal Design of Public Provision Schemes," Papers 1995-13, Uppsala - Working Paper Series.
    20. Rubinfeld, Daniel L, 1977. "Voting in a Local School Election: A Micro Analysis," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 30-42, February.
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    22. Anna Christina D'Addio & Marco Mira d'Ercole, 2005. "Trends and Determinants of Fertility Rates: The Role of Policies," OECD Social, Employment and Migration Working Papers 27, OECD Publishing.
    23. James Feyrer & Bruce Sacerdote & Ariel Dora Stern, 2008. "Will the Stork Return to Europe and Japan? Understanding Fertility within Developed Nations," Journal of Economic Perspectives, American Economic Association, vol. 22(3), pages 3-22, Summer.
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    Cited by:
    1. Masako Kimura & Daishin Yasui, 2012. "Public Policy and the Income-Fertility Relationship in Economic Development," KIER Working Papers 834, Kyoto University, Institute of Economic Research.
    2. Rainald Borck, 2011. "Adieu Rabenmutter - The Effect of Culture on Fertility, Female Labour Supply, the Gender Wage Gap and Childcare," CESifo Working Paper Series 3337, CESifo Group Munich.
    3. Masako Kimura & Daishin Yasui, 2012. "Public Policy and the Income-Fertility Relationship in Economic Development," Discussion Papers 1224, Graduate School of Economics, Kobe University.

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