IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Family Policies: What Does the Standard Endogenous Fertility Model Tell Us?

  • THOMAS BAUDIN

There exists a large consensus in the economic literature and in the economic institutions about the legitimacy of policies subsidizing education. This legitimacy lies in the fact that education is a source of positive externalities. In a standard framework of endogenous fertility, the present paper shows that this result is still valid but that subsidizing education also requires to tax births. Indeed, education subsidies decrease the net cost of children such that parents can exhibit a too high fertility rate. Furthemore, when health is introduced as another source of externalities, the model shows that health expenditures have not always to be subsidized. Indeed, the taxation of births plays the role of an indirect subsidy on health expenditures because it decreases the cost of health relatively to the cost of the quantity of children. When the externalities on education are very high relatively to the positive externalities on health, the indirect subsidy on health can exceed the subsidy that is really needed. Then health expenditures have to be taxed. This results are discussed in the light of family policies implemented in China and Sub-Saharan Africa.

(This abstract was borrowed from another version of this item.)

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 13 (2011)
Issue (Month): 4 (08)
Pages: 555-593

as
in new window

Handle: RePEc:bla:jpbect:v:13:y:2011:i:4:p:555-593
Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=1097-3923

More information through EDIRC

Order Information: Web: http://www.blackwellpublishing.com/subs.asp?ref=1097-3923

References listed on IDEAS
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.:

as in new window
  1. Eckstein, Zvi & Wolpin, Kenneth I., 1985. "Endogenous fertility and optimal population size," Journal of Public Economics, Elsevier, vol. 27(1), pages 93-106, June.
  2. J. Ignacio Conde-Ruiz & Eduardo L. Gimenez & Mikel Perez-Nievas, 2006. "Millian Efficiency with Endogenous Fertility," Documentos de trabajo - Analise Economica 0037, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  3. Cigno, Alessandro & Pettini, Anna, 2002. "Taxing family size and subsidizing child-specific commodities?," Journal of Public Economics, Elsevier, vol. 84(1), pages 75-90, April.
  4. Galor, Oded & Weil, David, 1999. "From Malthusian Stagnation to Modern Growth," CEPR Discussion Papers 2082, C.E.P.R. Discussion Papers.
  5. Gary S. Becker & Robert J. Barro, . "A Reformulation of the Economic Theory of Fertility," University of Chicago - Population Research Center 85-11, Chicago - Population Research Center.
  6. Oded Galor & David N. Weil, 1993. "The Gender Gap, Fertility, and Growth," NBER Working Papers 4550, National Bureau of Economic Research, Inc.
  7. Zeng, J & Jie Zhang, . "Optimal social security in a dynastic model with investment externalities and endogenous fertility," MRG Discussion Paper Series 1006, School of Economics, University of Queensland, Australia.
  8. Xiaobo Zhang & Kevin Honglin Zhang, 2002. "Regional Inequality," Chapters, in: The Globalization of the Chinese Economy, chapter 8 Edward Elgar.
  9. Philippe Michel & Bertrand Wigniolle, 2007. "On Efficient Child Making," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00185259, HAL.
  10. Zhang, Jie, 2003. "Optimal debt, endogenous fertility, and human capital externalities in a model with altruistic bequests," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1825-1835, August.
  11. Sah, Raaj Kumar, 1991. "The Effects of Child Mortality Changes on Fertility Choice and Parental Welfare," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 582-606, June.
  12. Michael Bar & Oksana Leukhina, 2010. "Demographic Transition and Industrial Revolution: A Macroeconomic Investigation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(2), pages 424-451, April.
  13. Xiaobo Zhang & Ravi Kanbur, 2004. "Spatial Inequality in Education and Health Care in China," Working Papers 159, Institute for Social and Economic Change, Bangalore.
  14. Alessandro Balestrino & Alessandro Cigno & Anna Pettini, 2002. "Endogenous Fertility and the Design of Family Taxation," International Tax and Public Finance, Springer, vol. 9(2), pages 175-193, March.
  15. Larry E. Jones & Alice Schoonbroodt, 2010. "Complements Versus Substitutes And Trends In Fertility Choice In Dynastic Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(3), pages 671-699, 08.
  16. David de la Croix & Matthias Doepke, 2003. "Inequality and Growth: Why Differential Fertility Matters," American Economic Review, American Economic Association, vol. 93(4), pages 1091-1113, September.
  17. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
  18. Oded Galor, 2004. "From Stagnation to Growth: Unified Growth Theory," GE, Growth, Math methods 0409003, EconWPA.
  19. Nerlove, Marc & Raut, Lakshmi K., 1993. "Growth models with endogenous population: A general framework," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 20, pages 1117-1174 Elsevier.
  20. 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, .
  21. Loupias, C. & Wigniolle, B., 2004. "Régime de retraite et chute de la natalité : évolution des moeurs ou arbitrage micro-économique ?," Working papers 119, Banque de France.
  22. Spiegel, Yossef, 1993. "Rawlsian Optimal Population Size," Journal of Population Economics, Springer, vol. 6(4), pages 363-73, November.
  23. David, DE LA CROIX & Axel, GOSSERIES, 2006. "Procreation, migration and tradable quotas," Discussion Papers (ECON - Département des Sciences Economiques) 2006056, Université catholique de Louvain, Département des Sciences Economiques.
  24. van Groezen, Bas & Leers, Theo & Meijdam, Lex, 2003. "Social security and endogenous fertility: pensions and child allowances as siamese twins," Journal of Public Economics, Elsevier, vol. 87(2), pages 233-251, February.
  25. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  26. Chakraborty, Shankha, 2004. "Endogenous lifetime and economic growth," Journal of Economic Theory, Elsevier, vol. 116(1), pages 119-137, May.
  27. BAUDIN, Thomas, 2010. "The optimal trade-off between quality and quantity with uncertain child survival," CORE Discussion Papers 2010057, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  28. Nerlove, Marc & Razin, Assaf & Sadka, Efraim, 1986. "Some Welfare Theoretic Implications of Endogenous Fertility," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 3-31, February.
  29. Spiegel, Y., 1993. "Rawlsian Optimal Population Size," Papers 97, Bell Communications - Economic Research Group.
  30. C. Simon Fan & Oded Stark, 2008. "Looking At The "Population Problem" Through The Prism Of Heterogeneity: Welfare And Policy Analyses," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(3), pages 799-835, 08.
  31. Razin, Assaf & Ben-Zion, Uri, 1975. "An Intergenerational Model of Population Growth," American Economic Review, American Economic Association, vol. 65(5), pages 923-33, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:bla:jpbect:v:13:y:2011:i:4:p:555-593. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)

or (Christopher F. Baum)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.