Public debt, child allowances and pension benefits with endogenous fertility
The public debt stock in some economically developed countries continues to increase because of a lack of tax revenues and the concomitant burdens of social security. Many of those countries suffer from lower birth rates and consequently, have fewer children. Child allowances might be an effective way to increase fertility, leading to higher future tax revenues through an increase in the number of younger people. In this paper, the authors examine whether or not child allowances reduce the public debt stock as a share of GDP in an economy with a pension system. As long as a non-negative debt policy is adopted in the long run, child allowances financed by bonds always increase the public debt stock as a share of GDP.
Volume (Year): 7 (2013)
Issue (Month): ()
|Contact details of provider:|| Postal: Kiellinie 66, D-24105 Kiel|
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://www.economics-ejournal.org/
More information through EDIRC
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.:
- Yakita, Akira, 2008. "Sustainability of public debt, public capital formation, and endogenous growth in an overlapping generations setting," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 897-914, April.
- Wigger, Berthold U., 2009.
"A note on public debt, tax-exempt bonds, and Ponzi games,"
Journal of Macroeconomics,
Elsevier, vol. 31(3), pages 492-499, September.
- Berthold U. Wigger, 2007. "A Note on Public Debt, Tax-Exempt Bonds, and Ponzi Games," IMF Working Papers 07/162, International Monetary Fund.
- Bas van Groezen & L. Meijdam, 2004.
"Growing Old and Staying Young: Population Policy in an Ageing Closed Economy,"
04-28, Utrecht School of Economics.
- Bas Groezen & Lex Meijdam, 2008. "Growing old and staying young: population policy in an ageing closed economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 573-588, July.
- Fanti, Luciano & Gori, Luca, 2009. "Population and neoclassical economic growth: A new child policy perspective," Economics Letters, Elsevier, vol. 104(1), pages 27-30, July.
- Noriyuki Yanagawa & Gene M. Grossman, 1992.
"Asset Bubbles and Endogenous Growth,"
NBER Working Papers
4004, National Bureau of Economic Research, Inc.
- Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467.
- Tetsuo Ono, 2003.
"Social security policy with public debt in an aging economy,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 16(2), pages 363-387, 05.
- Ono, Tetsuo, 2002. "Social Security Policy with Public Debt in an Aging Economy," Discussion Paper 107, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- 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.
- Zhang, Jie & Zhang, Junsen, 2007. "Optimal social security in a dynastic model with investment externalities and endogenous fertility," Journal of Economic Dynamics and Control, Elsevier, vol. 31(11), pages 3545-3567, November.
- Meijdam, Lex & van de Ven, Martijn & Verbon, Harrie A. A., 1996.
"The dynamics of government debt,"
European Journal of Political Economy,
Elsevier, vol. 12(1), pages 67-90, April.
- 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.
- Futagami, Koichi & Iwaisako, Tatsuro & Ohdoi, Ryoji, 2008. "Debt Policy Rule, Productive Government Spending, And Multiple Growth Paths," Macroeconomic Dynamics, Cambridge University Press, vol. 12(04), pages 445-462, September.
- Jie Zhang, 1997. "Fertility, Growth, and Public Investments in Children," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 835-43, November.
When requesting a correction, please mention this item's handle: RePEc:zbw:ifweej:201311. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.