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Changing Demography by Changing Democracy. Welfare and Fertility under Proxy Voting for Children

Author

Listed:
  • Federico Boffa

    (Free University of Bozen, IRCRES/CNR, Collegio Carlo Alberto)

  • Tommaso Reggiani

    (Cardiff University, Masaryk University, IZA)

  • Matteo Rizzolli

    (LUMSA University, Rome, Italy)

  • Federico Trombetta

    (DISEIS, Universita' Cattolica del Sacro Cuore, Milan, Italy)

Abstract

Proxy voting on behalf of children (also known as Demeny voting) has been proposed as a measure to contrast demographic decline in low-fertility countries. We study the effects of Demeny voting on fertility and budget allocation in the context of a probabilistic voting model. Citizens can vote to allocate the budget between either the production of a public good that results in immediate benefits for the present generation, or investment in a future-oriented public good that benefits the productivity of newborn children and society as a whole over time. Fertility is endogenous and disagreements arise between parents and non-parents over public spending. We show that proxy voting, by acting as a commitment device towards pro-children policies, increases fertility, future-oriented spending, such as early childhood investment and universal child care, and, under some conditions, increases long-term welfare for non-parents, thereby generating a Pareto improvement.

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Handle: RePEc:lsa:wphurf:wphurf02
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Keywords

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JEL classification:

  • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
  • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
  • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
  • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
  • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
  • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
  • K16 - Law and Economics - - Basic Areas of Law - - - Election Law
  • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
  • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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