The macroeconomics of fertility in small open economies: A test of the Becker-Barro model for The Netherlands and New Zealand

Citation
J. Poot et Jj. Siegers, The macroeconomics of fertility in small open economies: A test of the Becker-Barro model for The Netherlands and New Zealand, J POP ECON, 14(1), 2001, pp. 73-100
Citations number
46
Categorie Soggetti
Economics
Journal title
JOURNAL OF POPULATION ECONOMICS
ISSN journal
09331433 → ACNP
Volume
14
Issue
1
Year of publication
2001
Pages
73 - 100
Database
ISI
SICI code
0933-1433(200104)14:1<73:TMOFIS>2.0.ZU;2-X
Abstract
Becker and Barro (1988) formulated a theoretical model which identified a r ange of macroeconomic variables which can temporarily or permanently affect fertility in small open economies. This article tests the Becker-Barro mod el with relevant data which covers most of the 20th century for two small o pen economies, namely The Netherlands and New Zealand. The results show tha t government subsidies for having children have a strong positive effect on fertility, while the provision of public pensions has a strong negative ef fect. The degree of intergenerational altruism appears to have been declini ng. Moreover, there is only weak support for the hypothesis that real inter est rates positively influence fertility.