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Endogenous fertility in a model with non-dynastic parental altruism


A model of fertility choice is studied in which the utility of parents depends on how much they consume, on how many children they have and on the consumption of their children. Hence, parents are altruistic towards their children, but in a more limited sense than in the much discussed dynastic fertility model presented by Becker and Barro (1988). The concept of a (subgame perfect) bequest equilibrium is used to solve the non-dynastic model considered here. The steady state birth rate is lower in the non-dynastic model than in the Becker-Barro model. However, the key qualitative predictions concerning the dynamic behavior of fertility are strikingly similar in both models. JEL classification: J13, J11, D90.

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Received August 17, 1995/Accepted October 20, 1996

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Kollmann, R. Endogenous fertility in a model with non-dynastic parental altruism. J Popul Econ 10, 87–95 (1997).

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  • Key words: Fertility
  • consumption
  • bequest equilibrium
  • altruism
  • non-dynastic preferences.