This paper provides a dynamic model of the dual economy in which differences in productivity across sectors arise endogenously. Rather than relying on exogenous price distortions, duality arises because of differences between sectors in the separability of their fertility and labor decisions....

This paper studies the design of a pay-as-you-go social security system in an overlapping generations model where fertility is in part stochastic and in part determined through capital investment. If investments are publicly observable, pension benefits must be linked positively to the level of...

This paper is concerned with an extension of the notion of Pareto efficiency, referred to as Millian efficiency, to evaluate the performance of symmetric allocations in an overlapping generations setting with endogenous fertility. The criterium of Pareto dominance underlying the notion of...

Pareto-efficiency of the competitive equilibrium is studied for a simple economy with overlapping generations and endogenous fertility. For CES utility and production functions, the properties of the economy are closely related to the two elasticities of substitution. The competitive equilibrium...

This paper develops a model of endogenous growth where agents are altruistic and value both the utilities of their parent and of their children. Individuals endogenously choose the number of their children, and arbitrate between financing education, leaving them some bequest and offering some...

This paper studies the impact of endogenous population change on economic growth, analyzing the simplest optimal endogenous growth model, an AK type model, driven by human capital accumulation. We show that in steady state both demographic change and economic growth are constant, but the rate of...