Three essays on population economics

Abstract

The first essay considers two types of population policies: one through birth control as in China and the other through birth taxes. We find that both achieve the same equilibrium solution if tax revenue finances lump-sum transfers. By reducing fertility and promoting growth, these policies may achieve higher welfare than conventional education subsidies financed by income taxes. The second essay incorporates mortality into the endogenous growth model, which indicates that health investment increases along with income growth; fertility rate increases first and declines as the survival rate of agents rises. The third essay reviews the economic consequences caused by aging, and how the pension systems respond with aging. It reviews the aging in China and the features of China's pension and projections on aging and the financial needs for pension in China.