Population and neoclassical economic growth: A new child policy perspective

“In fact, Fanti and Gori (2009, 2011) show that public child allowances tend to be fertility-neutral in the long run, while at the same time reducing human capital accumulation.”

“Although population policies are currently high on the political agenda in several Western countries, few theoretical contributions have dealt with this topic in a dynamic general equilibrium framework (see, e.g., Momota, 2000; van Groezen et al., 2008; Fanti and Gori, 2009, 2010).”

“We also assume that (i) every young agent receives an unemployment benefit (bt) for the time of unemployment, and (ii) the cost of raising a child (measured in units of market goods) is constant and given by the positive amount m, see, for example, Van Groezen et al. [5], Van Groezen and Meijdam, [6] and Fanti and Gor…”

“…allowances, their impacts on fertility and human capital are ambiguous and depend on several parameters, such as the preference for having children (Fanti and Gori 2009), the output elasticity of physical capital (Yasuoka and Goto 2015), the pro-visions of grandparental childcare (Miyazawa 2016),…”

“In a one-sector model, p t = 1 , and combining the relevant equations corresponding to (21) and (24) results in a constant per capita stock of capital (see Michel and Wigniolle, 2009 and Fanti and Gori (2009).”

“Therefore, leveraging an overlapping generation (OLG) model such as in the recent studies of (Fanti and Gori 2009, 2012; Ribes 2022), could help explain the long-term evolution of households’ demand for investment instruments, notably through demographic shifts.”

“, [7] and more recently [8]) alternatively to that of time cost of children, and then it may be worth to investigate from a theoretical point of view which are its implications on the link between longevity and fertility.”

“(5) 3van Groezen, Leers, and Meijdam (2003), Fanti and Gori (2009), and Oshio (2001) also assume the same fixed child-care cost. van Groezen and Meijdam (2008) describe an economy with child-care cost z as a wage increasing function.”

“Yt = AK t N 1−ε t , 0 < ε < 1, 0 < A, (6) 7In economically developed countries with a consumption tax rate for necessities, child-care service is zero or discounted by the government.”

“In particular, government may rely on the Keynesian 6For example, Fanti and Gori (2009) explicitly take into account material costs of child rearing.”

“For example, Fanti and Gori (2009) indicated that a child tax can both promote population growth and per capita income but did not consider the education investment in children and human capital accumulation.”

“Galor and Weil (1996) derive that fertility is negatively correlated with income because of the opportunity cost of having children.”

“However, Fanti and Gori (2009) showed child allowance decreases the fertility in the steady state even if the fertility increases in short run, that is, child allowance is not always desirable to pull up the fertility. 4 Zhang and Zhang (2007) set the endogenous fertility model included unfunded pension system and der…”

“Models that do not consider market child-care services explicitly show a positive correlation (Oshio (2001) [18], van Groezen, Leers and Meijdam (2003) [19], van Groezen and Meijdam (2008) [20], Fanti and Gori (2009) [21], and others).”