Money, Endogenous Fertility and Economic Growth

Alberto Petrucci ()

Economics & Statistics Discussion Papers from University of Molise, Department of Economics

Abstract: This paper analyzes the issue of money superneutrality through an intertemporal optimizing model of capital accumulation with endogenous fertility, i.e. endogenous population growth. Two elements of this setup invalidate money superneutrality: i) a demand for fertility that depends on real money balances, and ii) an inverse relation between capital-labor ratio and population growth. Higher monetary growth increases fertility, since it reduces its opportunity cost, and hence diminishes capital intensity, and per capita output. This reverse Tobin effect is matched by an increase in aggregate capital and output growth rates. In this framework, the optimal monetary growth rule is a "distorted Friedman rule".

Keywords: Money superneutrality; Inflation; Fertility; Capital accumulation (search for similar items in EconPapers)
JEL-codes: J13 O11 O42 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2003-04-14
New Economics Papers: this item is included in nep-cba
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://web.unimol.it/progetti/repec/mol/ecsdps/ESDP03003.pdf (application/pdf)

Related works:
Journal Article: Money, endogenous fertility and economic growth (2003)
Working Paper: Money, Endogenous Fertility and Economic Growth (2003)
Working Paper: Money, Endogenous Fertility and Economic Growth (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mol:ecsdps:esdp03003

Access Statistics for this paper

More papers in Economics & Statistics Discussion Papers from University of Molise, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Claudio Lupi ().