Optimal Intergenerational Redistribution in a Two-Country Model with Endogenous Fertility
AbstractWe analyze a model with two countries that are linked by an integrated capital market. Fertility, and thus population growth, is endogenously determined by households. Our analysis proceeds in three steps: First, we characterize an optimal intertemporal and interregional allocation in a model with endogenous fertility and two countries. Second, we look for an institution supporting the optimal allocation. It turns out that in general, a decentralized equilibrium is inefficient. National public-pension systems with benefits that are related to the number of children implements the optimal allocation. This provides a justification for government interventions beyond its role as a "night-watchman." Third, we analyze whether national governments have the right incentives to implement the optimal system. It turns out that every national government has an incentive to deviate from the optimal structure and to shift part of the burden to the other country. Policy implications for the institutional arrangements within the European Union are discussed. Copyright 2001 by Kluwer Academic Publishers
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 106 (2001)
Issue (Month): 1-2 (January)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100332
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Samuelson, Paul A, 1975. "The Optimum Growth Rate for Population," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(3), pages 531-38, October.
- Lapan, Harvey E. & Enders, Walter, 1990.
"Endogenous Fertility, Ricardian Equivalence and Debt Management Policy,"
Staff General Research Papers
10814, Iowa State University, Department of Economics.
- Lapan, Harvey E. & Enders, Walter, 1990. "Endogenous fertility, Ricardian equivalence, and debt management policy," Journal of Public Economics, Elsevier, vol. 41(2), pages 227-248, March.
- Wildasin, D.E., 1992.
"Income Restribution and Migration,"
92-003, Indiana - Center for Econometric Model Research.
- Assaf Razin & Efraim Sadka, 1995. "Population Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262181606, December.
- Cigno, Alessandro, 1986. "Fertility and the Tax-Benefit System: A Reconsideration of the Theory of Family Taxation," Economic Journal, Royal Economic Society, vol. 96(384), pages 1035-51, December.
- Brown, Charles C. & Oates, Wallace E., 1987.
"Assistance to the poor in a federal system,"
Journal of Public Economics,
Elsevier, vol. 32(3), pages 307-330, April.
- David E. Wildasin, 1989.
"Non-Neutrallity of Debt with Endogenous Fertility,"
Discussion Paper Serie A
241, University of Bonn, Germany.
- Nishimura, Kazuo & Zhang, Junsen, 1992.
"Pay-as-you-go public pensions with endogenous fertility,"
Journal of Public Economics,
Elsevier, vol. 48(2), pages 239-258, July.
- Nishimura, K. & Zhang, J., 1990. "Pay-As-You-Go Public Pensions With Endogenous Fertility," Papers 202, Australian National University - Department of Economics.
- Raut, L. K., 1990. "Capital accumulation, income distribution and endogenous fertility in an overlapping generations general equilibrium model," Journal of Development Economics, Elsevier, vol. 34(1-2), pages 123-150, November.
- Eckstein, Zvi & Wolpin, Kenneth I., 1985. "Endogenous fertility and optimal population size," Journal of Public Economics, Elsevier, vol. 27(1), pages 93-106, June.
- MICHEL, Philippe & PESTIEAU, Pierre, .
"Population growth and optimality. When does serendipity hold?,"
CORE Discussion Papers RP
-1072, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Michel, Philippe & Pestieau, P, 1993. "Population Growth and Optimality: When Does Serendipity Hold?," Journal of Population Economics, Springer, vol. 6(4), pages 353-62, November.
- Torsten Persson, 1983.
"Deficits and Intergenerational Welfare in Open Economies,"
NBER Working Papers
1083, National Bureau of Economic Research, Inc.
- Persson, Torsten, 1985. "Deficits and intergenerational welfare in open economies," Journal of International Economics, Elsevier, vol. 19(1-2), pages 67-84, August.
- Hans-Werner Sinn, 1991.
"Tax Harmonization and Tax Competition in Europe,"
NBER Working Papers
3248, National Bureau of Economic Research, Inc.
- Peters, Wolfgang, 1995. "Public Pensions, Family Allowances and Endogenous Demographic Change," Journal of Population Economics, Springer, vol. 8(2), pages 161-83, May.
- Wildasin, David E, 1991. "Income Redistribution in a Common Labor Market," American Economic Review, American Economic Association, vol. 81(4), pages 757-74, September.
- Bental, Benjamin, 1989. "The Old Age Security Hypothesis and Optimal Population Growth," Journal of Population Economics, Springer, vol. 1(4), pages 285-301.
- Schweizer, Urs, 1996. "Endogenous fertility and the Henry George Theorem," Journal of Public Economics, Elsevier, vol. 61(2), pages 209-228, August.
- Deardorff, Alan V, 1976. "The Optimum Growth Rate for Population: Comment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 17(2), pages 510-15, June.
- Bertrand Wigniolle, 2001. "Fertility, intergenerational transfers and economic development," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 11(3), pages 297-321.
- Martin Kolmar, 1997. "Intergenerational redistribution in a small open economy with endogenous fertility," Journal of Population Economics, Springer, vol. 10(3), pages 335-356.
- Robert Fenge & Volker Meier, 2009.
"Are family allowances and fertility-related pensions perfect substitutes?,"
International Tax and Public Finance,
Springer, vol. 16(2), pages 137-163, April.
- Fenge, Robert & Meier, Volker, 2009. "Are family allowances and fertility-related pensions perfect substitutes?," Munich Reprints in Economics 20340, University of Munich, Department of Economics.
- Robert Fenge & Volker Meier, 2004.
"Are Family Allowances and Fertility-related pensions Siamese Twins?,"
CESifo Working Paper Series
1157, CESifo Group Munich.
- Volker Meier & Robert Fenge, 2004. "Are Family Allowances And Fertility-Related Pensions Siamese Twins?," Royal Economic Society Annual Conference 2004 125, Royal Economic Society.
- Robert Fenge & Volker Meier, 2003.
"Pensions and Fertility Incentives,"
CESifo Working Paper Series
879, CESifo Group Munich.
- Volker Meier & Matthias Wrede, 2005.
"Pension, Fertility, and Education,"
CESifo Working Paper Series
1521, CESifo Group Munich.
- Concepció Patxot & Elisenda Renteria & Miguel Sánchez Romero & Guadalupe Souto, 2012.
"Measuring the balance of government intervention on forward and backward family transfers using NTA estimates: the modified Lee Arrows,"
MPIDR Working Papers
WP-2012-015, Max Planck Institute for Demographic Research, Rostock, Germany.
- Concepció Patxot & Elisenda Rentería & Miguel Romero & Guadalupe Souto, 2012. "Measuring the balance of government intervention on forward and backward family transfers using NTA estimates: the modified Lee arrows," International Tax and Public Finance, Springer, vol. 19(3), pages 442-461, June.
- Kolmar, Martin, 2007. "Beveridge versus Bismarck public-pension systems in integrated markets," Regional Science and Urban Economics, Elsevier, vol. 37(6), pages 649-669, November.
- Martin Werding, 2006. "Kinderrente und Vorsorgepflicht - der ifo-Vorschlag zur Lösung der demographischen Krise des Rentensystems," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 59(07), pages 44-53, 04.
- G. ABIO & Géraldine MAHIEU & C. Patxot, 2002.
"On the Optimality of PAYG Pension Systems in an Endogenous Fertility Setting,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2002006, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Ab O, G. & Mahieu, G. & Patxot, C., 2004. "On the optimality of PAYG pension systems in an endogenous fertility setting," Journal of Pension Economics and Finance, Cambridge University Press, vol. 3(01), pages 35-62, March.
- G. Abío & Geraldine Mahieu & Cio Patxot, 2003. "On the Optimality of PAYG Pension Systems in an Endogenous Fertility Setting," CESifo Working Paper Series 1050, CESifo Group Munich.
- Ludwig von Auer & Bettina Büttner, 2004. "Endogenous Fertility, Externalities, and Efficiency in Old-Age Pension Systems," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(2), pages 294-, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.