, 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 …

new institutional setting of a market economy. The absolute level of income and of the standard of living is still low …