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

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  • Stauvermann, Peter J.
  • Ky, Sereyvath
  • Nam, Gi-Yu

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.

Suggested Citation

  • Stauvermann, Peter J. & Ky, Sereyvath & Nam, Gi-Yu, 2013. "The Costs of Increasing the Fertility Rate in an Endogenous Growth Model," MPRA Paper 46381, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:46381
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    References listed on IDEAS

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    Cited by:

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    2. Stauvermann, Peter Josef & Kumar, Ronald, 2013. "Financing human capital development via government debt: a small country case using overlapping generations framework," MPRA Paper 47453, University Library of Munich, Germany.

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    More about this item

    Keywords

    Fertility; endogenous growth; pay-as-you-go pension; child allowances;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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