The macroeconomics of fertility in small open economies: A test of the Becker-Barro model for The Netherlands and New Zealand
Becker and Barro (1988) formulated a theoretical model which identified a range of macroeconomic variables which can temporarily or permanently affect fertility in small open economies. This article tests the Becker-Barro model with relevant data which covers most of the 20th century for two small open economies, namely The Netherlands and New Zealand. The results show that government subsidies for having children have a strong positive effect on fertility, while the provision of public pensions has a strong negative effect. The degree of intergenerational altruism appears to have been declining. Moreover, there is only weak support for the hypothesis that real interest rates positively influence fertility.
Volume (Year): 14 (2001)
Issue (Month): 1 ()
|Note:||Received: 2 March 1998/Accepted: 1 September 1999|
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