Public debt, child allowances, and pension benefits with endogenous fertility
The stock of public debt in some developed countries continues to increase because of a lack of tax revenues and the burdens of social security. Many of those developed countries suffer from lower birth rates. Child allowances might help to raise fertility, leading to higher tax revenue in the future because of an increase in the younger population. In this paper, the authors examine whether or not child allowances reduce the public debt stock as a share of Gross Domestic Product (GDP) in an economy with a pension system. As long as the long-run debt ratio is non-negative, child allowances financed by bonds always increase the public debt stock per unit of GDP.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://www.economics-ejournal.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fanti, Luciano & Gori, Luca, 2009. "Population and neoclassical economic growth: A new child policy perspective," Economics Letters, Elsevier, vol. 104(1), pages 27-30, July.
- Grossman, Gene M. & Yanagawa, Noriyuki, 1993.
"Asset bubbles and endogenous growth,"
Journal of Monetary Economics,
Elsevier, vol. 31(1), pages 3-19, February.
- Noriyuki Yanagawa & Gene M. Grossman, 1992. "Asset Bubbles and Endogenous Growth," NBER Working Papers 4004, National Bureau of Economic Research, Inc.
- Grossman, G.M. & Yanagawa, N., 1992. "Asset Bubbles and Endogenous Growth," Papers 160, Princeton, Woodrow Wilson School - Public and International Affairs.
- Jie Zhang, 1997. "Fertility, Growth, and Public Investments in Children," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 835-43, November.
- Berthold U. Wigger, 2007. "A Note on Public Debt, Tax-Exempt Bonds, and Ponzi Games," IMF Working Papers 07/162, International Monetary Fund.
- Ono, Tetsuo, 2002.
"Social Security Policy with Public Debt in an Aging Economy,"
107, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Tetsuo Ono, 2003. "Social security policy with public debt in an aging economy," Journal of Population Economics, Springer, vol. 16(2), pages 363-387, 05.
- Zhang, Jie & Zhang, Junsen, 2007.
"Optimal social security in a dynastic model with investment externalities and endogenous fertility,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 31(11), pages 3545-3567, November.
- Zeng, J & Jie Zhang, . "Optimal social security in a dynastic model with investment externalities and endogenous fertility," MRG Discussion Paper Series 1006, School of Economics, University of Queensland, Australia.
- Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467.
- Futagami, Koichi & Iwaisako, Tatsuro & Ohdoi, Ryoji, 2008. "Debt Policy Rule, Productive Government Spending, And Multiple Growth Paths," Macroeconomic Dynamics, Cambridge University Press, vol. 12(04), pages 445-462, September.
- Meijdam, Lex & van de Ven, Martijn & Verbon, Harrie A. A., 1996.
"The dynamics of government debt,"
European Journal of Political Economy,
Elsevier, vol. 12(1), pages 67-90, April.
- Bas van Groezen & L. Meijdam, 2004.
"Growing Old and Staying Young: Population Policy in an Ageing Closed Economy,"
04-28, Utrecht School of Economics.
- Bas Groezen & Lex Meijdam, 2008. "Growing old and staying young: population policy in an ageing closed economy," Journal of Population Economics, Springer, vol. 21(3), pages 573-588, July.
- van Groezen, Bas & Leers, Theo & Meijdam, Lex, 2003. "Social security and endogenous fertility: pensions and child allowances as siamese twins," Journal of Public Economics, Elsevier, vol. 87(2), pages 233-251, February.
- Yakita, Akira, 2008. "Sustainability of public debt, public capital formation, and endogenous growth in an overlapping generations setting," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 897-914, April.
When requesting a correction, please mention this item's handle: RePEc:zbw:ifwedp:201247. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.