Optimal debt, endogenous fertility, and human capital externalities in a model with altruistic bequests

• 成果类型: Article
• 署名作者: Zhang, J
• 署名单位: University of Queensland
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(01)00195-5
• 发表日期: 2003
• 页码: 1825-1835
• 关键词: growth; transitional dynamics; optimal debt; Externality

摘要

and human capital externalities. Because of such externalities, education investment is too low and fertility is too high. While education subsidies are the conventional means to deal with these problems, we show that the optimal policy also comprises debt even when distortionary taxes are used. The reason is that debt tips the usual trade-off between children's quantity and quality in favor of the latter by increasing the bequest cost of children. The optimal debt-output ratio exceeds 10% for plausible parameterization. (C) 2002 Elsevier B.V. All rights reserved.