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On high fertility rates in developing countries: birth limits, birth taxes, or education subsidies?

Shi, Yuhua; Zhang, Jie

Description

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...[Show more]

CollectionsANU Research Publications
Date published: 2009
Type: Journal article
URI: http://hdl.handle.net/1885/59506
Source: Journal of Population Economics
DOI: 10.1007/s00148-008-0212-9

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