Public Pensions, Family Allowances and Endogenous Demographic Change
AbstractIn addition to an old-age insurance system which redistributes income from the young to the old, family allowances build a further redistributive system which typically favors younger and burdens older generations. Family allowances have tow main tasks: first, child allowances offer an incentive for child-bearing which influences fertility in an economy. Second, subsidies which ease the financial burden of a child's education guarantee a higher average level of productive skills and therefore enhance net domestic product. If individual demand for having and educating children leads to an impact on the economic system as a whole, we have external effects. In such a case, corrective taxation (Pigouvian tax) should be considered.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Population Economics.
Volume (Year): 8 (1995)
Issue (Month): 2 (May)
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Web page: http://link.springer.de/link/service/journals/00148/index.htm
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