Can fiscal policy spur fertility?
Can fiscal policy spur fertility?
Author(s): Janusz Kudła, Konrad WalczykSubject(s): Health and medicine and law, Family and social welfare, Fiscal Politics / Budgeting, Socio-Economic Research
Published by: Instytut Badań Gospodarczych
Keywords: fertility; optimal taxation; pronatalistic policy;
Summary/Abstract: The decreasing fertility rate is a serious problem for policymakers as it affects the pension system as well as private consumption and savings. It seems reasonable to analyze whether fiscal policy may mitigate the low birthrate problem. Purpose of the article: In this paper we strive to answer the question whether fiscal incentives spur fertility if parents are rational. Methods: A theoretical economic model of utility maximization is applied to analyze the impact of fiscal policy on fertility. The conclusions are based on the analysis of comparative statics simulation calibrated for actual data from Poland. Findings & Value added: The results indicate that a substantial fertility effect can be obtained by raising subsidies for children or general benefits for families.
Journal: Equilibrium. Quarterly Journal of Economics and Economic Policy
- Issue Year: 13/2018
- Issue No: 2
- Page Range: 167-179
- Page Count: 13
- Language: English
