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Corruption, Fertility, and Human Capital


  • Panagiotis Arsenis


  • Dimitrios Varvarigos



We build an overlapping generations model in which reproductive households face a child quantity/child quality trade-off and bureaucrats are delegated with the task of delivering public services that support the accumulation of human capital. By integrating the theoretical analyses of endogenous growth, corruption and fertility choices, we offer a novel mechanism on the driving forces behind demographic transition. In particular, we attribute it to the endogenous change in the incidence of bureaucratic corruption that occurs at different stages of an economy?s transition towards higher economic development.

Suggested Citation

  • Panagiotis Arsenis & Dimitrios Varvarigos, 2011. "Corruption, Fertility, and Human Capital," Discussion Papers in Economics 11/28, Department of Economics, University of Leicester, revised Apr 2011.
  • Handle: RePEc:lec:leecon:11/28

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    References listed on IDEAS

    1. David De La Croix & Clara Delavallade, 2011. "Democracy, Rule of Law, Corruption Incentives, and Growth," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(2), pages 155-187, April.
    2. Kwabena Gyimah-Brempong, 2002. "Corruption, economic growth, and income inequality in Africa," Economics of Governance, Springer, vol. 3(3), pages 183-209, November.
    3. Kalemli-Ozcan, Sebnem, 2003. "A stochastic model of mortality, fertility, and human capital investment," Journal of Development Economics, Elsevier, vol. 70(1), pages 103-118, February.
    4. David de la Croix & Matthias Doepke, 2003. "Inequality and Growth: Why Differential Fertility Matters," American Economic Review, American Economic Association, vol. 93(4), pages 1091-1113, September.
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    More about this item


    Corruption; Demographic transition; Human capital; Economic growth;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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