Demographic Transition and Economic Welfare: The Role of In-Cash and In-Kind Transfers
Stephen Miller () and
Kyriakos Neanidis ()
No 2014-24, Working papers from University of Connecticut, Department of Economics
Do in-cash and in-kind transfers to families affect parental fertility choices and economic welfare differently? We examine this question via a demographic transition channel in the context of a two-period overlapping generations model. In childhood, reproductive agents face a non-zero probability of death, while as adults, they allocate their time to work, leisure, and child rearing activities. Health status in adulthood exhibits "state dependence," as it depends on health in childhood. We find that cash transfers lead to both higher fertility and welfare if parents strongly value the quantity of their children. This positive welfare effect dominates an indirect negative welfare effect due to a lower growth rate. But, if parents value the quality of their children, in-kind transfers yield greater welfare, along with lower fertility and higher economic growth.
Keywords: fertility; health; growth; transfers; welfare (search for similar items in EconPapers)
JEL-codes: F35 F43 I12 O41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fdg and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://media.economics.uconn.edu/working/2014-24.pdf Full text (application/pdf)
Journal Article: Demographic transition and economic welfare: The role of in-cash and in-kind transfers (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:uct:uconnp:2014-24
Access Statistics for this paper
More papers in Working papers from University of Connecticut, Department of Economics University of Connecticut 365 Fairfield Way, Unit 1063 Storrs, CT 06269-1063. Contact information at EDIRC.
Bibliographic data for series maintained by Mark McConnel ().