This paper analyzes optimal, time consistent taxation in a dynastic family model with human and physical capital and with a balanced government budget. When tax revenue is used for publicly provided consumption or lump-sum transfers, leisure would be higher than its social optimum. Pareto...

effect on consumption in both the short and the long run, but has an ambiguous effect on donations.

In this paper we investigate the trade-off faced by regulators who must set a price for an intermediate good somewhere between the marginal cost and the monopoly price. We utilize a growth model with monopolistic suppliers of intermediate goods. Investment in innovation is required to produce a...

Two conflicting conclusions exist about the relationship between fertility and wage rates in steady-state equilibria in the literature. While Malthus and others predict a positive relation, R. J. Barro and G. S. Becker find a negative relation. Using several specifications of utility functions,...

In this paper, it is shown how subsidies for education and for the number of children affect economic growth, fertility, and welfare in an endogenous growth model with altruistic agents. Subsidizing education has not only a direct positive effect on growth but also an indirect positive effect on...

This paper develops an overlapping-generations model in which agents invest in health to prolong life in both working and retirement periods. It explores how unfunded social security with or without health subsidies affects life expectancy, economic growth, and welfare. In particular, by...