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Public Education, Fertility Incentives, Neoclassical Economic Growth And Welfare

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  • Luciano Fanti
  • Luca Gori

Abstract

Using a simple overlapping generations model of neoclassical growth, we analyse the effects of both child allowances and the system of public education on the rate of fertility, the per capita income and the individual lifetime welfare. The essential message of the present paper is that developed countries plagued by below‐replacement fertility and income stagnation may raise per capita income and the rate of fertility at the same time by increasing the public education expenditure rather than by resorting to child allowances. The latter, in fact, are found to be harmful for long‐run neoclassical economic growth and, in contrast with the common belief, for the rate of population growth as well. Moreover, welfare analysis has shown the existence of a Pareto‐efficient welfare‐maximizing educational contribution rate.

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  • Luciano Fanti & Luca Gori, 2010. "Public Education, Fertility Incentives, Neoclassical Economic Growth And Welfare," Bulletin of Economic Research, Wiley Blackwell, vol. 62(1), pages 59-77, January.
    • Handle: RePEc:bla:buecrs:v:62:y:2010:i:1:p:59-77
    DOI: 10.1111/j.1467-8586.2009.00326.x
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    References listed on IDEAS

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    Cited by:

    1. Ting-Ting Zhang & Xiu-Yun Cai & Xiao-Hui Shi & Wei Zhu & Shao-Nan Shan, 2023. "The Effect of Family Fertility Support Policies on Fertility, Their Contribution, and Policy Pathways to Fertility Improvement in OECD Countries," IJERPH, MDPI, vol. 20(6), pages 1-25, March.
    2. Kristen Harknett & Francesco Billari & Carla Medalia, 2014. "Do Family Support Environments Influence Fertility? Evidence from 20 European Countries," European Journal of Population, Springer;European Association for Population Studies, vol. 30(1), pages 1-33, February.
    3. Ken‐ichi Hashimoto & Ken Tabata, 2016. "Demographic change, human capital accumulation and R&D‐based growth," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(2), pages 707-737, May.
    4. Luciano Fanti, 2012. "Fertility and money in an OLG model," Discussion Papers 2012/145, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    5. Halkos, George & Tzeremes, Nickolaos, 2011. "Adjusting for cultural effects on countries’ education policy efficiency:an application of conditional full frontiers measures," MPRA Paper 30098, University Library of Munich, Germany.
    6. Ko Shakuno, 2014. "Public education, endogenous fertility and economic growth," TERG Discussion Papers 319, Graduate School of Economics and Management, Tohoku University.
    7. Masaya Yasuoka, 2013. "Can Child-Care Support Policies Halt Decreasing Fertility?," International Journal of Economics and Financial Issues, Econjournals, vol. 3(2), pages 409-419.

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