Who Owns Children and Does It Matter?
Published By: BREAD on eSS | Published Date: January, 18 , 2010In this paper a particular market failure that may lead to inefficiently low equilibrium
fertility and therefore to a need for government intervention are analysed. The friction which is investigated is related to the ownership of children. If parents have no claim on their children’s income, then the private benefit from producing a child may be smaller than the social benefit. We present an overlapping-generations (OLG) model with fertility choice and altruism, and model ownership by introducing a minimum constraint on transfers from parents to children.
Author(s): Alice Schoonbroodt, Michele Tertilt | Posted on: Jan 18, 2010 | Views(1573) | Download (615)