In a standard OLG model of a small open economy with logarithmic utility and endogenous fertility we show that the reversion of the relationship between fertility and wages (i.e. a transition from the Malthusian to the Modern fertility behaviour) may be possible in presence of intergenerational...

We adopt the traditional competitive OLG model a la' Samuelson (1958)-Diamond (1965) with two-period-living individuals, fixed fertility rates and labor supply, where the government can pursue retributive policies between generations by levying levy lump sum taxes/subsidies. By using standard...