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Endogenous fertility and modified Pareto-optimality


  • Günther Lang



In a world of endogenous fertility, where the number of descendants is an integral part of the economic allocation, the traditional concept of Pareto-optimality cannot be applied any longer: the number of individuals to be present on earth may vary between any two allocations we wish to compare. Therefore, the concept needs to be modified in order to give new life to the discussion of economic efficiency. This work introduces a straightforward variation of the Pareto-principle and characterizes the optimality of economic allocations according to this concept. It is shown that some of the well-known traditional results on intertemporal optimality do no longer hold. In particular, lump-sum tax instruments (or the rearrangement of initial endowments) are no longer a sufficient tool to achieve efficiency. Copyright Springer-Verlag Berlin/Heidelberg 2005

Suggested Citation

  • Günther Lang, 2005. "Endogenous fertility and modified Pareto-optimality," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 4(3), pages 171-191, December.
  • Handle: RePEc:spr:portec:v:4:y:2005:i:3:p:171-191 DOI: 10.1007/s10258-005-0046-2

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    Cited by:

    1. Mikel Pérez-Nievas & J. Ignacio Conde-Ruiz & Eduardo L. Giménez, 2014. "Efficiency and Endogenous Fertility," Working Papers 2014-10, FEDEA.
    2. Alice Schoonbroodt & Michele Tertilt, 2010. "Who Owns Children and Does It Matter?," Working Papers id:2360, eSocialSciences.
    3. Schoonbroodt, Alice & Tertilt, Michèle, 2014. "Property rights and efficiency in OLG models with endogenous fertility," Journal of Economic Theory, Elsevier, vol. 150(C), pages 551-582.
    4. Luca Spataro & Luciano Fanti, 2011. "The Optimal Level of Debt in an OLG Model with Endogenous Fertility," German Economic Review, Verein für Socialpolitik, vol. 12(3), pages 351-369, August.


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