The Costs of Increasing the Fertility Rate in an Endogenous Growth Model
AbstractIn this paper, we apply an Overlapping Generations (OLG) model with endogenous fertility and a pay as you go (PAYG) pension system to find out what are the economic consequences of different policy measures to increase the number of children. Especially, we take into account the introduction of a child dependent PAYG pension system, child allowances financed by a labor income tax, and a reduction of the child rearing costs. Some authors have shown that in small open economies with exogenous growth it is possible to increase the fertility without harming any generation. Here we show that this is impossible in a model with endogenous growth.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 46381.
Date of creation: Jan 2013
Date of revision:
Fertility; endogenous growth; pay-as-you-go pension; child allowances;
Find related papers by JEL classification:
- D10 - Microeconomics - - Household Behavior - - - General
- H5 - Public Economics - - National Government Expenditures and Related Policies
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-27 (All new papers)
- NEP-DEM-2013-04-27 (Demographic Economics)
- NEP-DGE-2013-04-27 (Dynamic General Equilibrium)
- NEP-FDG-2013-04-27 (Financial Development & Growth)
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