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Public capital and childcare capital in the two sector growth model

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  • Miyake, Yusuke

Abstract

Although many policies to raise the fertility rate have been conducted in many developed countries, they experience the low fertility rate. In the first place, what kind of impact will rapid population decline have on economic growth? This study is to analyze to answer these questions with two sector labor augmented growth model using two periods over-lapping-generations model. We consider a public capital by classifying it into two types, firstly, labor-augmented general public capital in final goods sector which indicated by Futagami, et al. (1993) and secondly, considering a public capital in childcare sector like as nursery school. This paper clearly shows the relationship between the optimal policies against the declining birthrate and an increase in the economic growth.

Suggested Citation

  • Miyake, Yusuke, 2021. "Public capital and childcare capital in the two sector growth model," MPRA Paper 108311, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:108311
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    References listed on IDEAS

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    More about this item

    Keywords

    Public capital - Childcare capital - Income tax - Economic growth;

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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