We examine how subsidy policies to support child-rearing affect the fertility rate in a textbook general equilibrium overlapping generations model extended to account for endogenous fertility decisions of individuals. It is shown the counter-intuitive result that increasing the child grant may...

This paper analyses the effectiveness of child-subsidy support policies in a general equilibrium overlapping generations model with endogenous fertility, child quality choices and human capital formation. It is shown, somewhat paradoxically, that only if the preference for the quality of...

We analyse the effects of the introduction of a unionised labour market in a simple Diamond's OLG framework. Interesting findings, so far escaped closer scrutiny, emerge. Under some particular conditions about the key parameters of the model, the unionised-wage economy may perform better than...

This article analyses the dynamics of an overlapping generations economy (Diamond, 1965) with pay-as-you-go financed public pensions and myopic expectations. It is shown that large PAYG pensions triggers economic fluctuations depending on the mutual relationship between technology and preference...

We show that the introduction of unfunded public pensions in a Cobb-Douglas economy with overlapping generations and endogenous fertility may cause complex economic cycles when individuals are short-sighted. In particular, the risk of cyclical instability increases with both the individual...

Using a simple OLG small open economy with endogenous fertility we show that the command optimum can be decentralised in a market setting using both a PAYG transfer from the young (old) to the old (young) and a tax-cum-subsidy (subsidy-cum-tax) policy, to redistribute within the working age...

We analyse how a reduced contribution rate affects the balanced pay-as-you-go pension budget in the basic overlapping generations model of neoclassical growth (Diamond, P., 1965. National debt in a neoclassical growth model. American Economic Review 55 (5), 1126-1150). It is shown that PAYG...

We re-examine the issue of optimal population in the basic overlapping generations model of neoclassical growth with endogenous fertility and time cost of children in both closed and small open economies. In the former case, we show that the golden rule of population growth can be achieved by a...

We analyse the dynamics of an overlapping generations economy with unfunded pay-as-you-go public pensions and myopic expectations by comparing exogenous and endogenous fertility contexts. It is shown that large PAYG pensions may cause endogenous fluctuations in both cases. However, ceteris...

We analyse an overlapping generations economy with two sectors of production: a capital-intensive commodity sector and a labour-intensive services sector. First, we consider an economy with exogenous population and study the effects of a change in the individual preference for old-aged services...