Optimal family policy in the presence of moral hazard, when the quantity and quality of children are stochastic

Alessandro Cigno and Annalisa Luporini ()

CHILD Working Papers from CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY

Abstract: We examine the second-best family policy under the assumption that both the number, and the future earning capacities of the children born to a couple are random variables with probability distributions conditional on unobservable parental actions. Potential parents take their decisions without taking into account the e¤ects of these actions on the government?s future tax revenue. The second-best policy provides parents with credit and insurance, and allows them to appropriate the external benefits of their actions.

Keywords: stochastic quantity and quality of children; moral hazard; population externalities; family allowances; scholarships; pensions (search for similar items in EconPapers)
JEL-codes: D13 D78 D82 H31 J13 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2009-04
New Economics Papers: this item is included in nep-cta
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Optimal Family Policy in the Presence of Moral Hazard when the Quantity and Quality of Children are Stochastic (2011)
Working Paper: Optimal Family Policy in the Presence of Moral Hazard, When the Quantity and Quality of Children Are Stochastic (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:wpc:wplist:wp13_09

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