Most parents know, instinctively, that spending more time with their children and being actively involved in their … education will give their children a good head-start in life. But as many parents have to juggle competing demands at work and … at home, there never seems to be enough time. Often, too, parents are reluctant to offer to help their children with …

, welfare state, parents and partner. Resources of each can be pooled, and resources of other actors can compensate for own …

, which internalises positive externalities of children - their pension contributions. Individuals may differ in their … preferences for children and their ability to have children at all. They can choose between the status-quo flat-rate benefits and … a new system, in which they get just the benefits that are (on average) financed by their own children, reduced by an …