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Population Policy through Tradable Procreation Rights

  • David de la Croix

    ()

    (economics CORE, Univ. cath. Louvain)

  • Axel Gosseries

Tradable permits are now widely used to control pollution. We investigate the implications of setting up such a system in another field -- population control --, either domestically or at the global level. We first generalize the framework with both tradable procreation allowances and tradable procreation exemptions, in order to tackle both over- and under-population problems. The implications of procreation rights for income inequality and education are contrasted. With procreation exemptions or procreation allowances that would be expensive enough, resources are redistributed from the rich to the poor. In contrast, cheap procreation allowances redistribute resource towards the rich. As far as human capital is concerned, natalist policy would be bad for education, while population control would be good. If procreation rights are granted in proportion to existing fertility levels (grandfathering) instead of being allocated uniformly, population control can be made more redistributive. On the whole, procreation rights offer an interesting alternative to both coercive population control in developing countries and pronatalist policies in the developed world

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Paper provided by Society for Economic Dynamics in its series 2006 Meeting Papers with number 420.

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Date of creation: 03 Dec 2006
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Handle: RePEc:red:sed006:420
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  1. Mikhail Golosov & Larry E. Jones, 2004. "Efficiency with Endogenous Population Growth," 2004 Meeting Papers 8, Society for Economic Dynamics.
  2. Michael Kremer & Daniel Chen, 2000. "Income-distribution Dynamics with Endogenous Fertility," NBER Working Papers 7530, National Bureau of Economic Research, Inc.
  3. DE LA CROIX, David & DOEPKE, Matthias, . "Inequality and growth: why differential fertility matters," CORE Discussion Papers RP -1676, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Philippe Michel & Bertrand Wigniolle, 2007. "On Efficient Child Making," Economic Theory, Springer, vol. 31(2), pages 307-326, May.
  5. Susan Greenhalgh, 2003. "Science, Modernity, and the Making of China's One-Child Policy," Population and Development Review, The Population Council, Inc., vol. 29(2), pages 163-196.
  6. Bohringer, Christoph & Lange, Andreas, 2005. "On the design of optimal grandfathering schemes for emission allowances," European Economic Review, Elsevier, vol. 49(8), pages 2041-2055, November.
  7. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240 National Bureau of Economic Research, Inc.
  8. Joskow, Paul L & Schmalensee, Richard & Bailey, Elizabeth M, 1998. "The Market for Sulfur Dioxide Emissions," American Economic Review, American Economic Association, vol. 88(4), pages 669-85, September.
  9. George B. Roberts, Chairman, Universities-National Bureau Committee for Economic Research, 1960. "Demographic and Economic Change in Developed Countries," NBER Books, National Bureau of Economic Research, Inc, number univ60-2, December.
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