Federalism, Fertility and Growth
Abstract
This paper analyses the effect of federalism on fertility and growth. In a model with human capital accumulation and endogenous fertility, two regimes of education finance are compared: central and local education. Using numerical simulation, I find that local education finance yields higher growth at the price of increased inequality. Aggregate fertility may be lower or higher under federalism. Interestingly, the fertility differential is reversed: while under central finance, rich families have fewer children than poor ones (when the elasticity of substitution between children and consumption is large), the opposite may occur under local finance. The paper also tests the relationship between fertility rates and fiscal decentralisation empirically on a panel of OECD countries and finds a weak negative effect of decentralisation on total and differential (poor minus rich) fertility.Download Info
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2167.Length:
Date of creation: 2007
Date of revision:
Handle: RePEc:ces:ceswps:_2167
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Related research
Keywords: fertility; education; decentralisation; growth;Other versions of this item:
- Rainald Borck, 2011. "Federalism, Fertility, and Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 30-54, 03.
References
References listed on IDEASPlease 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.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Eiji Yamamura, 2011.
"Corruption and Fertility: Evidence from OECD countries,"
Journal of Economics and Econometrics,
Economics and Econometrics Research Institute (EERI), Brussels, vol. 54(2), pages 34-57.
- Eiji Yamamura, 2011. "Corruption and Fertility: Evidence from OECD countries," EERI Research Paper Series EERI_RP_2011_03, Economics and Econometrics Research Institute (EERI), Brussels.
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