Savings, fertility and public policy in an OLG small open economy

Luca Spataro, Luciano Fanti and Pier Mario Pacini

Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy

Abstract: In an OLG model of a small open economy we analyse the characteristics of saving and fertility under two different public policies: i) constant per capita taxes (and endogenous public debt) and ii) constant per-capita debt (and endogenous stabilizing taxes). Our analysis highlights that a fertility recovery (reduction resp.) requires always a reduction (increase resp.) of taxes, although the implications for public debt management are not trivial, since they depend on the regime the economy is experiencing, i.e. on the relationship between the interest rate and the fertility rate in absence of taxes.

Keywords: overlapping generations; endogenous fertility; savings; small open economy; public national debt (search for similar items in EconPapers)
JEL-codes: D15 H63 J13 (search for similar items in EconPapers)
Date: 2017-01-01
New Economics Papers: this item is included in nep-dge
Note: ISSN 2039-1854
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pie:dsedps:2017/230

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