Public capital and childcare capital in the two sector growth model

Miyake, Yusuke (2001): Public capital and childcare capital in the two sector growth model.

Abstract

Although many policies to raise the fertility rate have been conducted in many developed countries, they experience the low fertility rate. In the first place, what kind of impact will rapid population decline have on economic growth? This study is to analyze to answer these questions with two sector labor augmented growth model using two periods over-lapping-generations model. We consider a public capital by classifying it into two types, firstly, labor-augmented general public capital in final goods sector which indicated by Futagami, et al. (1993) and secondly, considering a public capital in childcare sector like as nursery school. This paper clearly shows the relationship between the optimal policies against the declining birthrate and an increase in the economic growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Public capital - Childcare capital - Income tax - Economic growth
• Subjects: D - Microeconomics > D9 - Intertemporal Choice > D91 - Intertemporal Household Choice ; Life Cycle Models and Saving; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models

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