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Family Tax Policy in a Model with Endogenous Fertility à la Barro-Becker

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  • Lucia Granelli

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

This paper assesses quantitatively the effect of family fiscal policies on fertility, labour supply and parental childcare using a general equilibrium model with dynastic households. The introduction of time allocation decisions in the original Barro-Becker framework allows to reconcile the conclusion of the micro-econometric literature on pro-nativist fiscal policies, where such policies have a small effect on fertility, and the theoretical macroeconomic literature, where fertility is deemed to be elastic with respect to macroeconomic shocks. The use of indirect inference for calibrating the elasticity of fertility to fiscal subsidies enables the model to reproduce what observed in US data over the period 1905-2005.

Suggested Citation

  • Lucia Granelli, 2016. "Family Tax Policy in a Model with Endogenous Fertility à la Barro-Becker," LIDAM Discussion Papers IRES 2016010, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2016010
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    References listed on IDEAS

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    Cited by:

    1. Lucia Granelli, 2017. "Family Tax Policy with Heterogeneous Altruistic Households," LIDAM Discussion Papers IRES 2017019, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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