Money, Endogenous Fertility and Economic Growth

Growing population, greenhouse gas emissions, and the pressure to improve economic growth are conflicting and controversial issues at the core of political economy. In this paper, using a theoretical model, we show that by shifting relative costs of child-rearing and costs for education, we can achieve a slowdown in population growth and greenhouse emissions, and an enhancement of economic growth. These goals are based on two fundamental considerations—the quantity–quality tradeoff with respect to the choice of the number, and the educational level of children. An analysis is presented using a standard overlapping generation (OLG) framework that is extended with human capital, endogenous fertility, and changing life expectancy. The environmental impact of economic activities is modeled using a modified IPAT framework. Our results show that it is possible to reduce the level of carbon emissions of the whole economy and to generate a Pareto improvement. Subsequently, an economic strategy is presented that is costless, has various advantages, and particularly useful for countries experiencing high fertility rate that are not sustainable.

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Endogenous Fertility and Development Traps with Endogenous Lifetime

Economics Research International ◽

10.1155/2011/726756 ◽

2011 ◽

Vol 2011 ◽

pp. 1-4

Author(s):

Luciano Fanti ◽

Luca Gori

Keyword(s):

Economic Growth ◽

Decision Variable ◽

Endogenous Fertility ◽

Economic Decision ◽

Endogenous Lifetime ◽

Costs Of Children

We extend the literature on endogenous lifetime and economic growth by Chakraborty (2004) and Bunzel and Qiao (2005) to endogenous fertility. We show that development traps due to underinvestments in health cannot appear when fertility is an economic decision variable and the costs of children are represented by a constant fraction of the parents' income used for their upbringing.

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MIGRATION, CONGESTION, AND GROWTH

Macroeconomic Dynamics ◽

10.1017/s1365100517001043 ◽

2018 ◽

Vol 23 (8) ◽

pp. 3035-3064 ◽

Cited By ~ 1

Author(s):

Leonid V. Azarnert

Keyword(s):

Economic Growth ◽

Human Capital ◽

Growth Model ◽

Capital Accumulation ◽

World Economy ◽

Temporal Evolution ◽

Human Capital Accumulation ◽

Endogenous Fertility ◽

Advanced Economy ◽

The World

This article analyzes the effect of migration from a less advanced economy to a more advanced economy on economic growth. The analysis is performed in a two-country growth model with endogenous fertility, in which congestion diseconomies are incorporated. The model shows that out-migration increases fertility and reduces human capital in the source economy. At the same time, in-migration reduces fertility and can increase or decrease the average level of human capital in the host economy. I show how migration affects the inter-temporal evolution of human capital in the world economy. I also demonstrate that a tax imposed on immigrants in the host economy can increase human capital accumulation in the receiving and sending economies and the world as a whole.

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