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Child Benefit and Fiscal Burden with Endogenous Fertility

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Author Info
Oguro, Kazumasa
Takahata, Junichiro

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Abstract

This paper studies a possibility of efficiency improvement by child benefit programs in an overlapping generations economy with endogenous fertility and government debt. We derive conditions for improving an efficiency by child benefit using Representative-Consumer efficiency (RC-efficiency), an efficiency criterion for an endogenous fertility setting developed by Michel and Wigniolle (2007). It is shown that the result crucially depends on the relative amount of accumulated government debt in the economy. It is likely to hold in an economy of developed countries with a low fertility rate. We provide an implication of the results in the real economy.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15378.

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Date of creation: Apr 2009
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Handle: RePEc:pra:mprapa:15378

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Related research
Keywords: Endogenous fertility; Pareto-efficiency; child benefit; fiscal burden;

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Find related papers by JEL classification:
D6 - Microeconomics - - Welfare Economics
J1 - Labor and Demographic Economics - - Demographic Economics
H6 - Public Economics - - National Budget, Deficit, and Debt

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  1. Gary S. Becker & Robert J. Barro, 1988. "A Reformulation of the Economic Theory of Fertility," NBER Working Papers 1793, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Mikhail Golosov & Larry E. Jones, 2004. "Efficiency with Endogenous Population Growth," 2004 Meeting Papers 8, Society for Economic Dynamics. [Downloadable!]
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  3. Andrew B. Abel & N. Gregory Mankiw & Lawrence H. Summers & Richard J. Zeckhauser, 1989. "Assessing Dynamic Efficiency: Theory and Evidence," NBER Working Papers 2097, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Willis, Robert J, 1973. "A New Approach to the Economic Theory of Fertility Behavior," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S14-64, Part II, . [Downloadable!] (restricted)
  5. Eckstein, Zvi & Wolpin, Kenneth I., 1985. "Endogenous fertility and optimal population size," Journal of Public Economics, Elsevier, vol. 27(1), pages 93-106, June. [Downloadable!] (restricted)
  6. Nishimura, Kazuo & Zhang, Junsen, 1992. "Pay-as-you-go public pensions with endogenous fertility," Journal of Public Economics, Elsevier, vol. 48(2), pages 239-258, July. [Downloadable!] (restricted)
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  7. Philippe Michel & Bertrand Wigniolle, 2007. "On Efficient Child Making," Economic Theory, Springer, vol. 31(2), pages 307-326, May. [Downloadable!] (restricted)
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  8. Raut, L K & Srinivasan, T N, 1994. "Dynamics of Endogenous Growth," Economic Theory, Springer, vol. 4(5), pages 777-90, August.
  9. Rupa Chakrabarti, 1999. "Endogenous fertility and growth in a model with old age support," Economic Theory, Springer, vol. 13(2), pages 393-416. [Downloadable!] (restricted)
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Cited by:
(explanations, Please 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.)

  1. Kazumasa, Oguro & Junichiro , Takahata & Manabu, Shimasawa, 2009. "Child Benefit and Fiscal Burden: OLG Model with Endogenous Fertility," MPRA Paper 16132, University Library of Munich, Germany. [Downloadable!]
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This page was last updated on 2009-11-24.

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