Hyperbolic Discounting and Fertility

Wrede M (2011)


Publication Language: English

Publication Type: Journal article

Publication year: 2011

Journal

Publisher: Springer Verlag (Germany)

Book Volume: 24

Pages Range: 1053-1070

DOI: 10.1007/s00148-009-0283-2

Abstract

This paper analyzes the impact of hyperbolic discounting on the timing and on the number of births. Using a simple three-period model, it shows that, without the opportunity to shift the burden of rearing children into the future, hyperbolic discounters will give birth to fewer children. If child-care costs can be shifted completely to later periods, the impact of hyperbolic discounting on births depends on the underlying motive for motherhood, namely, whether children are regarded as consumption or investment goods. A large-sample empirical analysis, which uses an inconsistent savings pattern as an indicator of time inconsistency, confirms the theoretical results. © 2009 Springer-Verlag.

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How to cite

APA:

Wrede, M. (2011). Hyperbolic Discounting and Fertility. Journal of Population Economics, 24, 1053-1070. https://doi.org/10.1007/s00148-009-0283-2

MLA:

Wrede, Matthias. "Hyperbolic Discounting and Fertility." Journal of Population Economics 24 (2011): 1053-1070.

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