Showing papers by "Gary S. Becker published in 1989"
TL;DR: In this article, the authors extended the literature on optimal economic growth to allow for optimizing choices of fertility and intergenerational transfers, and used the model to assess the effects of child-rearing costs, the tax system, the conditions of technology and preferences, and shocks to the initial levels of population and the capital stock.
Abstract: Altruistic parents make choices of family size along with decisions about consumption and intergenerational transfers. The authors apply this framework to a closed economy, where the determination of interest rates and wage rates is simultaneous with the determination of population growth and the accumulation of capital. Thus, they extend the literature on optimal economic growth to allow for optimizing choices of fertility and intergenerational transfers. The authors use the model to assess the effects of child-rearing costs, the tax system, the conditions of technology and preferences, and shocks to the initial levels of population and the capital stock. Copyright 1989 by The Econometric Society.
1,038 citations
Posted Content•
42 citations
01 Jan 1989
TL;DR: The Wealth of Nations as mentioned in this paper is the greatest book ever written on economics, and The Theory of Moral Sentiments is a good book to learn from Adam Smith, the founder of modern economics, who said that it is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.
Abstract: Let me start with a quotation familiar to some of you: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” The same author went on to say with some irony, “We are not ready to suspect any person of being defective in selfishness.” These are statements by Adam Smith, the founder of modern economics. The first statement is from the greatest book ever written on economics, called The Wealth of Nations, the second from a good book called The Theory of Moral Sentiments.
12 citations