ENDOGENOUS FERTILITY, PENSION PROGRAMS AND INTERGENERATIONAL WELFARE

摘要

This paper shows that the existence of a technology or any kind of commitment which allow agents to transfer wealth to the future accounts for fertility control. If only an intra-family market exists, the equilibrium fertility rate is higher than when a simple welfare state or financial markets are introduced. Therefore the introduction of pension programs both decreases fertility and, subsequently, puts the sustainability of the welfare state in trouble.