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It Takes a Village: Network Effect of Child-rearing

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  • Yomogida, Morihiro
  • 蓬田, 守弘
  • ヨモギダ, モリヒロ
  • Aoki, Reiko
  • 青木, 玲子
  • アオキ, レイコ

Abstract

We explore an economy where number of children is endogenously determined and the cost of raising children is determined by the total number of children in the economy. We show that number of children will be too small compared to the social optimum and that the network effect may magnify the decline of "birthrate". Our analysis demonstrates that public policies to increase birthrate must take this into account when determining subsidies.

Suggested Citation

  • Yomogida, Morihiro & 蓬田, 守弘 & ヨモギダ, モリヒロ & Aoki, Reiko & 青木, 玲子 & アオキ, レイコ, 2005. "It Takes a Village: Network Effect of Child-rearing," Discussion Paper 275, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:piedp1:275
    Note: May 2005
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/14168/pie_dp275.pdf
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    1. Aoki, Reiko & 青木, 玲子 & アオキ, レイコ, 2004. "Microeconomics of Declining Birthrate: Review of Existing Literature," Discussion Paper 228, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
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