Population growth: A pure welfarist approach

Abstract

In this study we propose a framework based on welfarist principles to deal with several issues concerned with population economics models, such as the Repugnant Conclusion, both in absolute and relative sense, the shape of childbearing costs and population dynamics, under both normative and positive perspectives. We show that the relative critical level criterion can avoid both the assumption of high childbearing costs and the absolute repugnant conclusion (ARC) but cannot avoid the relative repugnant conclusion (RRC). Moreover, optimal fertility is increased by technological shocks and displays cycles. Both ARC and RRC can be avoided by extending the model to a decentralized economy with consumption externalities; in the latter model, a technological shock reduces long‐run fertility and can generate cycles along the transitional path.

Optimal taxation in an endogenous growth model with variable population and public expenditure

“…In particular, in a growth model with endogenous population, the Repugnant Conclusion takes the form of upper-corner solution for the population rate of growth (society reproduces at its physical maximum rate). On this issue, see Marsiglio (2014), Renström and Spataro (2019), and the literature therein. See Spataro and Renström (2012) for an optimal taxation and policy change analysis in the presence of Critical Level Utilitarianism a là Blackorby et al (1995), although without endogenous growth.…”

“…Moreover, most of the endogenous growth models mentioned above suffer from the "scale effect," meaning that the steady-state growth rate increases with the size (scale) of the economy, as indexed, for example, by population. 3 To breach this gap, the contribution of our work is twofold: first, we extend the Barro (1990) model, in which the engine of growth is productive public expenditure, by allowing for both endogenous labor supply (as in Turnovsky, 2000) and endogenous population (as in Barro & Becker, 1989;Barro, 1988 andRenström, 2012;Renström & Spataro, 2019) in one encompassing model. Second, in this scenario, we analyze the second-best optimal tax structure.…”

Reproductive health, fairness, and optimal policies

“…We aim at discussing the efficient way to correct these externalities in the long term. At first, we consider the usual utilitarian social objective, but in contrast to Renström and Spataro (2019), we do not restrict our attention to a welfarist approach, even though they enrich it with a critical level of utility. Indeed, in the utilitarian case, health inequalities still prevail and we can be concerned that the utility of the fertile is larger than the utility of the ex‐ante infertile.…”