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Does Pro-population Policy Raise Per Capita Consumption?


  • Ken-ichi Hashimoto
  • Yoshiyasu Ono


We theoretically analyze the effects of a child allowance, an improvement in the efficiency of child rearing and a labor income tax on the fertility rate and per capita consumption. The effects on per capita consumption are opposite in the absence, and the presence, of unemployment. For example, a child allowance urges people to have more children and allocate more labor to child rearing, decreasing labor supply for the purpose of commodity production. Therefore, under full employment, it decreases per capita consumption. In the presence of unemployment, however, it reduces the deflationary gap and hence stimulates per capita consumption.

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  • Ken-ichi Hashimoto & Yoshiyasu Ono, 2007. "Does Pro-population Policy Raise Per Capita Consumption?," ISER Discussion Paper 0697, Institute of Social and Economic Research, Osaka University.
  • Handle: RePEc:dpr:wpaper:0697

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    Cited by:

    1. Yoshiyasu Ono, 2014. "International Economic Interdependence and Exchange-rate Adjustment under Persistent Stagnation," The Japanese Economic Review, Japanese Economic Association, vol. 65(1), pages 70-92, March.
    2. Ryu-ichiro Murota & Yoshiyasu Ono, 2015. "Fiscal Policy under Long-run Stagnation: A New Interpretation of the Multiplier Effect," ISER Discussion Paper 0937, Institute of Social and Economic Research, Osaka University.
    3. Yoshiyasu Ono, 2014. "Macroeconomic interdependence between a stagnant and a fully employed country," ISER Discussion Paper 0893rr, Institute of Social and Economic Research, Osaka University, revised Feb 2017.
    4. Yoshiyasu Ono, 2015. "Growth, Secular Stagnation and Wealth Preference," ISER Discussion Paper 0946, Institute of Social and Economic Research, Osaka University.
    5. Yoshiyasu Ono & Junichiro Ishida, 2014. "On Persistent Demand Shortages: A Behavioural Approach," The Japanese Economic Review, Japanese Economic Association, vol. 65(1), pages 42-69, March.
    6. Murota, Ryu-ichiro & Ono, Yoshiyasu, 2015. "Fiscal policy under deflationary gap and long-run stagnation: Reinterpretation of Keynesian multipliers," Economic Modelling, Elsevier, vol. 51(C), pages 596-603.

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