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Social Security, Endogenous Fertility and the Optimal Family Size

Author

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  • Mohamed Bouzahzah
  • Mohamed Jellal

Abstract

This note analyzes a model of endogenous fertility in the presence of financial market assets and social security pensions. Given the children externality, the fertility rate chosen in a market economy is too low compared to the Social Optimum, asking for a corrective policy. Indeed, the representative household does not take into account this children externality which leads to a suboptimal family size. We show that an optimal demographic allocation can be implemented through a subvention taxation policy.

Suggested Citation

  • Mohamed Bouzahzah & Mohamed Jellal, 2013. "Social Security, Endogenous Fertility and the Optimal Family Size," Review of Economics and Institutions, Università di Perugia, vol. 4(2).
    • Handle: RePEc:pia:review:v:4:y:2013:i:2:n:4
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    More about this item

    Keywords

    endogenous fertility; social security pensions; subvention taxation policy;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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