ENDOGENOUS FERTILITY AND THE GEORGE,HENRY THEOREM

Models of endogenous demographic change deal with population size as a n additional object of the welfare analysis. In these models the overl apping-generations (OLG) model serves as the basic framework. In club theory, too, population size is treated as an endogenous variable. In local public goods (LPG) models, the so-called Henry George Theorem, w hich requires local public expenditures to be financed by a 100% tax o n aggregate land rent, is known as a (first-order) condition for club efficiency. The present paper establishes and exploits an isomorphism between steady states of the OLG model and allocations of the LPG mode l. The paper revisits Samuelson's fallacy concerning his goldenest gol den rule and it explores institutional arrangements that sustain the o ptimum growth of population.