Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/257049 
Year of Publication: 
2019
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 7 [Issue:] 4 [Article No.:] 117 [Publisher:] MDPI [Place:] Basel [Year:] 2019 [Pages:] 1-16
Publisher: 
MDPI, Basel
Abstract: 
The aim of the paper is to investigate how child allowances affect population growth and pension benefits of pay-as-you-go (PAYG) pension systems in small open and closed economies. We apply an overlapping-generations (OLG) model in its canonical form, where we consider endogenous fertility and growth generated by human capital accumulation. From the analysis, we conclude that in a small open economy, child allowances increase the number of children, yet decrease pension benefits over the long run. If we consider a closed economy, the effect of child allowances on fertility is ambiguous and remains negative on pension benefits over the long run.
Subjects: 
child allowances
fertility
human capital
OLG model
PAYG pension system
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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