This paper bridges two distinct areas of inquiry: the economic theory of the family and behavioral research on time-inconsistent preferences. In our model, hyperbolic discounting couples engage in household production activities, thereby accumulating family-specific capital over time. At any...

This paper bridges two distinct areas of inquiry: the economic theory of the family and behavioral research on time-inconsistent preferences. In our model, hyperbolic discounting couples engage in household production activities, thereby accumulating family-specific capital over time. At any...

Germany has the lowest birth rate among all OECD countries. To encourage fertility, the federal government has recently introduced a set of reforms that led to a substantial expansion of public child care for under three year old children. Using administrative county-level data, we exploit...