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Journal of Population Economics

, Volume 8, Issue 2, pp 161–183 | Cite as

Public pensions, family allowances and endogenous demographic change

  • Wolfgang Peters
Article

Abstract

In addition to an old-age insurance system which redistributes income from the young to the old, family allowances build a further redistributive system which typically favors younger and burdens older generations. Family allowances have two main tasks: first, child allowances offer an incentive for child-bearing which influences fertility in an economy. Second, subsidies which ease the financial burden of a child's education guarantee a higher average level of productive skills and therefore enhance net domestic product. If individual demand for having and educating children leads to an impact on the economic system as a whole, we have external effects. In such a case, corrective taxation (Pigouvian tax) should be considered.

Keywords

Domestic Product Economic System Main Task Financial Burden External Effect 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag 1995

Authors and Affiliations

  • Wolfgang Peters
    • 1
    • 2
  1. 1.Department of EconomicsUniversity of BonnBonnGermany
  2. 2.Department of EconomicsUniversity of RegensburgRegensburgGermany

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