Tjalling C. Koopmans Research Institute
Discussion Paper Series nr: 04-28
Growing Old and Staying Young:
Population Policy in an Ageing
Closed Economy
Bas van Groezen
Lex Meijdam
Tjalling C. Koopmans Research Institute
Utrecht School of Economics
Utrecht University
Vredenburg 138
3511 BG Utrecht
The Netherlands
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Bas van Groezen
Utrecht University
Utrecht School of Economics
Vredenburg 138
3511 BG Utrecht
The Netherlands.
E-mail: [email protected]
Lex Meijdam
Department of Economics and CentER for Economic Research
Tilburg University
P.O. Box 90153
5000 LE Tilburg
The Netherlands
Email: [email protected]
This paper can be downloaded at: http://www.koopmansinstitute.uu.nl
Utrecht School of Economics
Tjalling C. Koopmans Research Institute
Discussion Paper Series 04-28
Growing Old and Staying Young: Population
Policy in an Ageing Closed Economy
Bas van Groezena
Lex Meijdamb
a
b
Utrecht School of Economics
Utrecht University
Department of Economics and CentER for Economic Research
Tilburg University
November 2004
Abstract
This paper analyses the relation between public pensions, fertility and child care in a
closed economy OLG-model with endogenous fertility. It it shown that it is optimal to
introduce child allowances if the government redistributes income from the young to
the old, and rises when longevity increases.
Keywords: ageing, child allowances, closed economy, endogenous fertility,
overlapping generations, pensions, social security
JEL classification: D10, H55, J13, J14, J18, J26
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