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On high fertility rates in developing countries: birth limits, birth taxes, or education subsidies?
- Source :
- Journal of Population Economics; Jul2009, Vol. 22 Issue 3, p603-640, 38p, 4 Charts
- Publication Year :
- 2009
-
Abstract
- In this paper, we consider two types of population policies observed in practice: birth limits and birth taxes. We find that both achieve very similar equilibrium solutions if tax revenue finances lump-sum transfers. By reducing fertility and promoting growth, both birth policies may achieve higher welfare than conventional education subsidies financed by income taxes. A birth tax for education subsidies can achieve the first-best solution. The welfare gain of the first-best policy may be equivalent to a massive 10–50% rise in income, depending on the degree of human capital externalities and the elasticity of intertemporal substitution. [ABSTRACT FROM AUTHOR]
- Subjects :
- EQUILIBRIUM
INTERNAL revenue
FERTILITY
INCOME tax
HUMAN capital
WAGE taxation
Subjects
Details
- Language :
- English
- ISSN :
- 09331433
- Volume :
- 22
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Journal of Population Economics
- Publication Type :
- Academic Journal
- Accession number :
- 38016745
- Full Text :
- https://doi.org/10.1007/s00148-008-0212-9