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The birth of children often shifts the power balance within a family. If family decisions are made according to the … birth of children may differ from the ex-ante optimal choice. In a model of cooperative decision making within a family, we … show that this time consistency problem leads to a systematic downward bias in fertility choices. By keeping fertility low …
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Much of macroeconomics is concerned with the allocation of physical capital, human capital, and labor over time and across people. The decisions on savings, education, and labor supply that generate these variables are made within families. Yet the family (and decision making in families) is...
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