The Costs of Increasing the Fertility Rate in an Endogenous Growth Model

Peter Stauvermann, Sereyvath Ky and Gi-Yu Nam

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we apply an Overlapping Generations (OLG) model with endogenous fertility and a pay as you go (PAYG) pension system to find out what are the economic consequences of different policy measures to increase the number of children. Especially, we take into account the introduction of a child dependent PAYG pension system, child allowances financed by a labor income tax, and a reduction of the child rearing costs. Some authors have shown that in small open economies with exogenous growth it is possible to increase the fertility without harming any generation. Here we show that this is impossible in a model with endogenous growth.

Keywords: Fertility; endogenous growth; pay-as-you-go pension; child allowances (search for similar items in EconPapers)
JEL-codes: D10 H5 J13 (search for similar items in EconPapers)
Date: 2013-01
New Economics Papers: this item is included in nep-dem, nep-dge and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/46381/1/MPRA_paper_46381.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:46381

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().