Endogenous fertility, endogenous lifetime and economic growth: the role of child policies

Luciano Fanti and Luca Gori ()

MPRA Paper from University Library of Munich, Germany

Abstract: We examine the effects of child policies on both the transitional dynamics and long-run demo-economic outcomes in the conventional overlapping generations model of neoclassical growth extended with endogenous longevity and endogenous fertility. The government invests in public health (Chakraborty, 2004) and the individual survival probability at the end of youth depends on health expenditure through an S-shaped longevity function. This may give rise to four steady states and, hence, development traps are possible. However, poverty or prosperity may not depend on initial conditions, while being the result of a child policy design. In particular, a child tax can be used to effectively allow those economies that were entrapped into poverty to prosper irrespective of where they start from.

Keywords: Child policy; Endogenous fertility; Health; Life expectancy; OLG model (search for similar items in EconPapers)
JEL-codes: I10 J13 O40 (search for similar items in EconPapers)
Date: 2010-10-23
New Economics Papers: this item is included in nep-dge, nep-fdg and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Endogenous fertility, endogenous lifetime and economic growth: the role of child policies (2014)
Working Paper: Endogenous fertility, endogenous lifetime and economic growth: the role of child policies (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:26146

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