IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/114528.html
   My bibliography  Save this paper

Which is Better, Childcare Support or Public Capital Investment?

Author

Listed:
  • Miyake, Yusuke

Abstract

In recent years, the birthrate in developed countries has been declining. The government has been providing financial support to households raising children by increasing childcare allowances and offering free childcare as part of its policy to reduce the birthrate. However, the total fertility rate in Japan continues to be at an all-time low, and the effects of these policies are unclear. This analysis will examine whether the direct allocation of funds to households as described above is beneficial to the declining birthrate and growth or whether the government's indirect increase in public capital can affect the birthrate by boosting labor productivity and expanding income. This analysis shows that an increased share of public capital investment brings higher economic growth. The growth rate will be maximized if all tax revenue is allocated to public capital investment.

Suggested Citation

  • Miyake, Yusuke, 2022. "Which is Better, Childcare Support or Public Capital Investment?," MPRA Paper 114528, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114528
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/114528/1/MPRA_paper_114528.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert J. Barro & Xavier Sala-I-Martin, 1992. "Public Finance in Models of Economic Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(4), pages 645-661.
    2. de la Croix,David & Michel,Philippe, 2002. "A Theory of Economic Growth," Cambridge Books, Cambridge University Press, number 9780521001151, September.
    3. repec:bla:scandj:v:95:y:1993:i:4:p:607-25 is not listed on IDEAS
    4. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    5. Docquier, Frederic & Paddison, Oliver & Pestieau, Pierre, 2007. "Optimal accumulation in an endogenous growth setting with human capital," Journal of Economic Theory, Elsevier, vol. 134(1), pages 361-378, May.
    6. Noritaka Maebayashi, 2013. "Public capital, public pension, and growth," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(1), pages 89-104, February.
    7. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1.
    8. Blanchard, Olivier J, 1985. "Debt, Deficits, and Finite Horizons," Journal of Political Economy, University of Chicago Press, vol. 93(2), pages 223-247, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Miyake, Yusuke, 2021. "Public capital and childcare capital in the two sector growth model," MPRA Paper 108311, University Library of Munich, Germany.
    2. Yusuke Miyake, 2021. "Childcare Support and Public Capital in an Ultra-Declining Birthrate Society," Economics Bulletin, AccessEcon, vol. 41(2), pages 634-642.
    3. Yusuke Miyake, 2020. "Labor or Capital Income Tax for Growth in an Aging Society," Applied Economics and Finance, Redfame publishing, vol. 7(5), pages 54-65, September.
    4. Noritaka Maebayashi, 2013. "Public capital, public pension, and growth," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(1), pages 89-104, February.
    5. Bishnu, Monisankar, 2013. "Linking consumption externalities with optimal accumulation of human and physical capital and intergenerational transfers," Journal of Economic Theory, Elsevier, vol. 148(2), pages 720-742.
    6. Minoru Watanabe & Yusuke Miyake & Masaya Yasuoka, 2015. "Public Investment Financed By Consumption Tax In An Aging Society," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 60(05), pages 1-17, December.
    7. Simon Fan & Yu Pang & Pierre Pestieau, 2020. "A model of the optimal allocation of government expenditures," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(4), pages 845-876, August.
    8. Robinson, James A. & Srinivasan, T.N., 1993. "Long-term consequences of population growth: Technological change, natural resources, and the environment," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 21, pages 1175-1298, Elsevier.
    9. C. Fan & Jie Zhang, 2013. "Differential fertility and intergenerational mobility under private versus public education," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 907-941, July.
    10. Yew, Siew Ling & Zhang, Jie, 2013. "Socially optimal social security and education subsidization in a dynastic model with human capital externalities, fertility and endogenous growth," Journal of Economic Dynamics and Control, Elsevier, vol. 37(1), pages 154-175.
    11. Kota Ogasawara & Mizuki Komura, 2022. "Consequences of war: Japan’s demographic transition and the marriage market," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(3), pages 1037-1069, July.
    12. Henri Bello Fika, 2024. "Gender Gap in the Paid Economic Activity and Economic Growth in the CEMAC Zone," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 2329-2349, July.
    13. Hossain, Mohammad A. & Tisdell, Clement A. & Ayon, Tonmoyee Hasan, 2012. "Does Workforce Participation Empower Women? Micro-Level Evidence from Urban Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 35(3), pages 51-78, September.
    14. Alberto Basso & David Cuberes, 2013. "Fertility and Financial Development: Evidence from U.S. Counties in the 19th Century," Working Papers 2013011, The University of Sheffield, Department of Economics.
    15. Mitrut, Andreea & Wolff, François-Charles, 2011. "The impact of legalized abortion on child health outcomes and abandonment. Evidence from Romania," Journal of Health Economics, Elsevier, vol. 30(6), pages 1219-1231.
    16. Asiedu, Elizabeth & Azomahou, Théophile T. & Getachew, Yoseph & Yitbarek, Eleni, 2021. "Share the love: Parental bias, women empowerment and intergenerational mobility," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 846-867.
    17. Timothy W. Guinnane, 2011. "The Historical Fertility Transition: A Guide for Economists," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 589-614, September.
    18. Katsushi S. Imai & Takahiro Sato, 2014. "Recent Changes in Micro-Level Determinants of Fertility in India: Evidence from National Family Health Survey Data," Oxford Development Studies, Taylor & Francis Journals, vol. 42(1), pages 65-85, March.
    19. Galindev, Ragchaasuren, 2008. "The Evolution of Population, Technology and Output," MPRA Paper 17116, University Library of Munich, Germany, revised 22 Aug 2009.
    20. Ina GANGULI & Ricardo HAUSMANN & Martina VIARENGO, 2014. "Closing the gender gap in education: What is the state of gaps in labour force participation for women, wives and mothers?," International Labour Review, International Labour Organization, vol. 153(2), pages 173-207, June.

    More about this item

    Keywords

    Public capital investment・Childcare support・Income tax・Economic growth;

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:114528. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.