The falling sperm counts story": A limit to growth?
Johanna Etner (),
Natacha Raffin () and
No 2016-36, EconomiX Working Papers from University of Paris Nanterre, EconomiX
We develop an overlapping generations model of growth, in which agents differ through their ability to procreate. Based on epidemiological evidence, we assume that pollution is a cause of this health heterogeneity, affecting sperm quality. Nevertheless, agents with impaired fertility may incur health treatments in order to increase their chances of parenthood. In this set-up, we analyse the dynamic behaviour of the economy and characterise the situation reached in the long run. Then, we determine the optimal solution that prevails when a social planner maximises a Millian utilitarian criterion and propose a set of available economic instruments to decentralise the optimal solution. We underscore that to correct for both the externalities of pollution and the induced-health inefficiency, it is necessary to tax physical capital while it requires to overall subsidy mostly harmed agents within the economy. Hence, we argue that fighting against the sources of an altered reproductive health is more relevant than directly inciting agents to incur health treatments.
Keywords: Pollution; Growth; Fertility; Health. (search for similar items in EconPapers)
JEL-codes: I18 O44 Q56 (search for similar items in EconPapers)
Pages: 46 pages
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Working Paper: "The Falling Sperm Counts Story": A Limit to Growth? (2016)
Working Paper: «The Falling Sperm Counts Story»: A Limit to Growth? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2016-36
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