Looking at the "population problem" through the prism of heterogeneity : welfare and policy analyses

Chengze, Simon FAN, Oded STARK

Research output: Journal PublicationsJournal Article (refereed)

12 Citations (Scopus)


Upon introducing heterogeneity and dynamics into a model of the demand for children, a problem of optimal population is defined and analyzed. It is shown that from the perspective of social welfare, better-educated individuals produce too few children while less-educated individuals produce too many children and all individuals invest too little in the education of their children. The impact of several policy tools geared at addressing the "population problem" is investigated, in particular how child allowances and other tax-subsidy policies can be harnessed to enhance welfare, and how and why early childhood education programs can mitigate the "population problem."
Original languageEnglish
Pages (from-to)799-835
Number of pages37
JournalInternational Economic Review
Issue number3
Publication statusPublished - 1 Aug 2008


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