scholarly journals THE GREAT TRANSITION: IMPLICATIONS FROM ENVIRONMENTAL POLICY FOR THE QUALITY–QUANTITY TRADE-OFF IN CHILDREN-REARING

2018 ◽  
Vol 63 (05) ◽  
pp. 1155-1174
Author(s):  
FREDERIC TOURNEMAINE ◽  
CHRISTOPHER TSOUKIS
Keyword(s):  
Human Capital ◽  
Environmental Policy ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Poverty Trap ◽  
Human Capital Accumulation ◽  
Endogenous Fertility ◽  
Overlapping Generations Model ◽  
Trade Off ◽  
Great Transition

We develop an overlapping-generations model with human capital accumulation and endogenous fertility containing a pollution externality. We study the effects of an environmental policy on individuals’ quality–quantity trade-off on children. In a Malthusian poverty trap, we show that a more stringent policy induces a reduction of fertility. In a state of perpetual development, we find a similar result and show that higher environmental quality, growth and welfare are compatible goals. Moreover, we show that the policy can be used as an instrument for initiating a country’s great transition from a state of poverty to a state of development.

scholarly journals ENVIRONMENTAL POLICY, EDUCATION AND GROWTH: A REAPPRAISAL WHEN LIFETIME IS FINITE

2011 ◽  
Vol 16 (5) ◽  
pp. 661-685 ◽  
Author(s):  
Xavier Pautrel
Keyword(s):  
Human Capital ◽  
Environmental Policy ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Monetary Economics ◽  
Physical Capital ◽  
Positive Influence ◽  
Overlapping Generations Model ◽  
Final Output ◽  
Source Of Pollution

When finite lifetime is introduced in a Lucas [Journal of Monetary Economics 22 (1988), 3–42] growth model where the source of pollution is physical capital, the environmental policy may enhance the growth rate of a market economy, whereas pollution does not influence educational activities, labor supply is not elastic, and human capital does not enter the utility function. The result arises from the generational turnover effect due to finite lifetime and it remains valid under conditions when the education sector uses final output as well as time to accumulate human capital. This article also demonstrates that ageing reduces the positive influence of environmental policy when growth is driven by human capital accumulation à la Lucas in the overlapping-generations model of Yaari [Review of Economic Studies 32 (1965), 137–150] and Blanchard [Journal of Political Economy 93 (1985), 223–247].

A NOTE ON CREDIT MARKET DEVELOPMENT AND HUMAN CAPITAL ACCUMULATION

2013 ◽  
Vol 17 (7) ◽  
pp. 1525-1541 ◽  
Author(s):  
Wai-Hong Ho
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Credit Market ◽  
Market Development ◽  
Human Capital Accumulation ◽  
Self Selection ◽  
Selection Equilibrium ◽  
Cross Country ◽  
The Cost

This paper explores the interplay between credit market development and human capital accumulation in a two-period overlapping-generations economy with asymmetric information under the assumption that young lenders channel credits to young borrowers and acquire education. We find that, at the self-selection equilibrium, lenders will allocate more time to acquire education if the cost of screening borrowers falls. Furthermore, a longer duration of lenders' schooling time suppresses borrowers' incentive to cheat thereby enabling lenders to screen less frequently. Our preliminary cross-country empirical analysis appears to support these findings.

scholarly journals Stimulating annuity markets

2016 ◽  
Vol 16 (4) ◽  
pp. 554-583
Author(s):  
BEN J. HEIJDRA ◽  
JOCHEN O. MIERAU ◽  
TIMO TRIMBORN
Keyword(s):  
General Equilibrium ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Partial Equilibrium ◽  
Human Capital Accumulation ◽  
Overlapping Generations Model ◽  
Long Run ◽  
State Agents ◽  
Annuity Markets ◽  
Stimulation Of

AbstractWe study the short-, medium-, and long-run implications of stimulating annuity markets in a dynamic general-equilibrium overlapping-generations model. We find that beneficial partial-equilibrium effects of stimulating annuity markets are counteracted by negative general-equilibrium repercussions. Balancing the positive partial-equilibrium and negative general-equilibrium forces we show that there exists an intermediate level of annuitization such that the lifetime utility of steady-state agents is maximized. Studying the transition to this optimal degree of annuitization shows that currently middle-aged individuals stand to gain most from the stimulation of annuity markets. Complementing our main analysis, we highlight the centrality of the interplay between human-capital accumulation and annuity market policy.

scholarly journals GENES, LEGITIMACY AND HYPERGAMY: ANOTHER LOOK AT THE ECONOMICS OF MARRIAGE

2015 ◽  
Vol 81 (4) ◽  
pp. 331-377 ◽  
Author(s):  
Gilles Saint-Paul
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Single Women ◽  
Human Capital Accumulation ◽  
Marriage Markets ◽  
Men And Women ◽  
Trade Off ◽  
Mating Opportunities ◽  
The City ◽  
Distribution Of Income

Abstract:In order to credibly “sell” legitimate children to their spouse, women must forego more attractive mating opportunities. This paper derives the implications of this observation for the pattern of matching in marriage markets, the dynamics of human capital accumulation, and the evolution of the gene pool. A key consequence of the trade-off faced by women is that marriage markets will naturally tend to behypergamous– that is, a marriage is more likely to be beneficial to both parties relative to remaining single, the greater the man’s human capital, and the lower the woman’s human capital. As a consequence, it is shown that the equilibrium can only be of two types. In the “Victorian” type, all agents marry somebody of the same rank in the distribution of income. In the “Sex and the City” (SATC) type, women marry men who are better ranked than themselves. There is a mass of unmarried men at the bottom of the distribution of human capital, and a mass of single women at the top of that distribution. It is shown that the economy switches from a Victorian to an SATC equilibrium as inequality goes up.The model sheds light on how marriage affects the returns to human capital for men and women. Absent marriage, these returns are larger for women than for men but the opposite may occur if marriage prevails. Finally, it is shown that the institution of marriage may or may not favour human capital accumulation depending on how genes affect one’s productivity at accumulating human capital.

scholarly journals SOCIAL CAPITAL, HUMAN CAPITAL, AND FERTILITY

2019 ◽  
pp. 1-19
Author(s):  
Raffaella Coppier ◽  
Fabio Sabatini ◽  
Mauro Sodini
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Overlapping Generations ◽  
Overlapping Generations Model ◽  
Trade Off ◽  
A Chain

We develop an overlapping generations model to study how the interplay between social and human capital affects fertility. In a framework where families face a trade-off between the quantity and quality of children, we incorporate the assumption that social capital plays a key role in the accumulation of human capital. We show how the erosion of social capital can trigger a chain of reactions leading households to base their childbearing decisions on quantity, instead of quality, resulting in higher fertility.

scholarly journals MIGRATION, CONGESTION, AND GROWTH

2018 ◽  
Vol 23 (8) ◽  
pp. 3035-3064 ◽  
Author(s):  
Leonid V. Azarnert
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Growth Model ◽  
Capital Accumulation ◽  
World Economy ◽  
Temporal Evolution ◽  
Human Capital Accumulation ◽  
Endogenous Fertility ◽  
Advanced Economy ◽  
The World

This article analyzes the effect of migration from a less advanced economy to a more advanced economy on economic growth. The analysis is performed in a two-country growth model with endogenous fertility, in which congestion diseconomies are incorporated. The model shows that out-migration increases fertility and reduces human capital in the source economy. At the same time, in-migration reduces fertility and can increase or decrease the average level of human capital in the host economy. I show how migration affects the inter-temporal evolution of human capital in the world economy. I also demonstrate that a tax imposed on immigrants in the host economy can increase human capital accumulation in the receiving and sending economies and the world as a whole.

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