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Looking At The "Population Problem" Through The Prism Of Heterogeneity: Welfare And Policy Analyses

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  • C. Simon Fan
  • Oded Stark

Abstract

Upon introducing heterogeneity and dynamics into a model of the demand for children, a problem of optimal population is defined and analyzed. It is shown that from the perspective of social welfare, better-educated individuals produce too few children while less-educated individuals produce too many children and all individuals invest too little in the education of their children. The impact of several policy tools geared at addressing the "population problem" is investigated, in particular how child allowances and other tax-subsidy policies can be harnessed to enhance welfare, and how and why early childhood education programs can mitigate the "population problem." Copyright � 2008 the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Bibliographic Info

Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 49 (2008)
Issue (Month): 3 (08)
Pages: 799-835

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Handle: RePEc:ier:iecrev:v:49:y:2008:i:3:p:799-835

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Citations

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Cited by:
  1. Yew, Siew Ling & Zhang, Jie, 2013. "Socially optimal social security and education subsidization in a dynastic model with human capital externalities, fertility and endogenous growth," Journal of Economic Dynamics and Control, Elsevier, vol. 37(1), pages 154-175.
  2. BAUDIN, Thomas, 2010. "Family policies : what does the standard endogenous fertility model tell us ?," CORE Discussion Papers 2010058, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Schoonbroodt, Alice & Tertilt, Michele, 2010. "Property rights and efficiency in OLG models with endogenous fertility," Discussion Paper Series In Economics And Econometrics 1020, Economics Division, School of Social Sciences, University of Southampton.
  4. David de la Croix & Axel Gosseries, 2011. "The Natalist Bias of Pollution Control," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  5. C. Fan & Jie Zhang, 2013. "Differential fertility and intergenerational mobility under private versus public education," Journal of Population Economics, Springer, vol. 26(3), pages 907-941, July.

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