Does Pro‐Population Policy Raise Per Capita Consumption?

19 Pages Posted: 26 May 2011

See all articles by Yoshiyasu Ono

Yoshiyasu Ono

Osaka University - Institute of Social and Economic Research (ISER)

Ken-Ichi Hashimoto

Kobe University - Faculty of Economics

Date Written: June 2011

Abstract

We theoretically analyze the effects of a child allowance, an improvement in the efficiency of child rearing and a labour income tax on the fertility rate and per capita consumption. The effects on per capita consumption are opposite in the absence, and the presence, of unemployment. For example, a child allowance urges people to have more children and allocate more labour to child rearing, decreasing labour supply for the purpose of commodity production. Therefore, under full employment it decreases per capita consumption. In the presence of unemployment, however, it reduces the deflationary gap and hence stimulates per capita consumption.

Keywords: E24, J13

Suggested Citation

Ono, Yoshiyasu and Hashimoto, Ken-Ichi, Does Pro‐Population Policy Raise Per Capita Consumption? (June 2011). Japanese Economic Review, Vol. 62, Issue 2, pp. 151-169, 2011. Available at SSRN: https://ssrn.com/abstract=1853111 or http://dx.doi.org/10.1111/j.1468-5876.2010.00513.x

Yoshiyasu Ono

Osaka University - Institute of Social and Economic Research (ISER) ( email )

6-1 Mihogaoka
Ibaraki, Osaka 567-0047
Japan

Ken-Ichi Hashimoto (Contact Author)

Kobe University - Faculty of Economics ( email )

2-1, Rokkodai
Nada-Ku
Kobe, Hyogo, 657-8501
Japan
+81 78 803 6839 (Phone)

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