Subsidy policies in a fertility choice model

Manuel Gómez

Atlantic Economic Journal, 2001, vol. 29, issue 4, 438-449

Abstract: This paper compares the effects that a subsidy to health expenditure or a subsidy to child-rearing costs has in a fertility choice model in which mortality is also endogenously determined. Whichever subsidy is instituted, the population growth rate rises. While a subsidy to health expenditure reduces welfare, a subsidy to child-rearing costs might increase welfare. The welfare analysis also suggests that a subsidy to health expenditure should be financed by a capital income tax, while a subsidy to child-rearing costs should be financed by a consumption tax. Copyright International Atlantic Economic Society 2001

Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:kap:atlecj:v:29:y:2001:i:4:p:438-449

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DOI: 10.1007/BF02299332

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