Money, Endogenous Fertility and Economic Growth

Alberto Petrucci ()

CEIS Research Paper from Tor Vergata University, CEIS

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 e.ect 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
Date: 2003-06-17
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Citations: View citations in EconPapers (2)

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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)
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