Child allowances, fertility, and chaotic dynamics

Hung Ju Chen, Ming-Chia Li*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


This paper analyzes the dynamics in an overlapping generations model with the provision of child allowances. Fertility is an increasing function of child allowances and there exists a threshold effect of the marginal effect of child allowances on fertility. We show that if the effectiveness of child allowances is sufficiently high, an intermediate-sized tax rate will be enough to generate chaotic dynamics. Besides, a decrease in the inter-temporal elasticity of substitution will prevent the occurrence of irregular cycles.

Original languageEnglish
Article number023106
Issue number2
StatePublished - 1 Jan 2013

Fingerprint Dive into the research topics of 'Child allowances, fertility, and chaotic dynamics'. Together they form a unique fingerprint.

Cite this