IDEAS home Printed from https://ideas.repec.org/a/pes/ierequ/v13y2018i2p167-179.html
   My bibliography  Save this article

Can fiscal policy spur fertility?

Author

Listed:
  • Janusz Kudla

    (University of Warsaw, Poland)

  • Konrad Walczyk

    (Warsaw School of Economics, Poland)

Abstract

Research background: The decreasing fertility rate is a serious problem for policymakers as it affects the pension system as well as private consumption and savings. It seems reasonable to analyze whether fiscal policy may mitigate the low birthrate problem. Purpose of the article: In this paper we strive to answer the question whether fiscal incentives spur fertility if parents are rational. Methods: A theoretical economic model of utility maximization is applied to analyze the impact of fiscal policy on fertility. The conclusions are based on the analysis of comparative statics simulation calibrated for actual data from Poland. Findings & Value added: The results indicate that a substantial fertility effect can be obtained by raising subsidies for children or general benefits for families.

Suggested Citation

  • Janusz Kudla & Konrad Walczyk, 2018. "Can fiscal policy spur fertility?," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 13(2), pages 167-179, June.
  • Handle: RePEc:pes:ierequ:v:13:y:2018:i:2:p:167-179
    DOI: 10.24136/eq.2018.009
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.24136/eq.2018.009
    Download Restriction: no

    File URL: https://libkey.io/10.24136/eq.2018.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    fertility; optimal taxation; pronatalistic policy;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pes:ierequ:v:13:y:2018:i:2:p:167-179. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adam P. Balcerzak (email available below). General contact details of provider: https://edirc.repec.org/data/ibgtopl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.