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
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.