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Public Provision of Private Child Goods


  • Masako Kimura

    () (Institute of Economic Research, Kyoto University)

  • Daishin Yasui

    () (Graduate School of Economics, Kyoto University)


This paper analyzes the public provision of private goods for children in a politicoeconomic model with endogenous fertility. The government provides every child with goods that can also be purchased by parents in private markets, and the level of provision is determined by majority rule. Households with many children benefit from the public provision more than those with fewer children; thus, a political conflict arises between them. The distribution of the number of children across households, which is a crucial factor for determining which group is politically dominant, is endogenously determined by households' fertility decision. The sequential interaction between fertility and political decisions might lead to multiple equilibria: equilibrium with high-fertility and low-private/public-spending-ratio and equilibrium with lowfertility and high-private/public-spending-ratio. Our model could explain the large differences in fertility and structure of child-related spending across countries.

Suggested Citation

  • Masako Kimura & Daishin Yasui, 2008. "Public Provision of Private Child Goods," KIER Working Papers 662, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:662

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    References listed on IDEAS

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    Cited by:

    1. Hanming Fang & Peter Norman, 2014. "Toward an efficiency rationale for the public provision of private goods," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 375-408, June.
    2. Rainald Borck, 2014. "Adieu Rabenmutter—culture, fertility, female labour supply, the gender wage gap and childcare," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 739-765, July.
    3. Masako Kimura & Daishin Yasui, 2012. "Public Policy and the Income-Fertility Relationship in Economic Development," KIER Working Papers 834, Kyoto University, Institute of Economic Research.
    4. Rainald Borck, 2011. "Adieu Rabenmutter - The Effect of Culture on Fertility, Female Labour Supply, the Gender Wage Gap and Childcare," CESifo Working Paper Series 3337, CESifo Group Munich.

    More about this item


    Fertility; Publicly Provided Private Goods;

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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