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This study analyses how capital accumulation and fertility react to a child allowance policy in an overlapping generations model of growth with endogenous fertility. Multiple equilibria are shown to exist depending on the size of the child allowance.
Motivated by the recent decrease in the number of children experienced in several developed countries, in this paper we consider a small open economy model with overlapping generations, endogenous fertility and human capital formation through public education, and look at the role the government can play in affecting fertility through the widely used child allowance policy. Contrary to conventional...
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