This dissertation investigates the macroeconomic effects of family policies. For the case of Germany, it can be shown that family policies have a positive impact on fertility, welfare and the government budget. The welfare ranking of family policies depends on the way the government uses the budgetary surplus.
It is shown that family policies can also be used to stabilize the public pay-as-you-go pension system. Given an external financial shock that hits the pension system re-adjusting the system with family policies is welfare superior to reforms of the pension system itself.
Finally, it can be shown that the effect on fertility remains when introducing altruism in the model while the effects on welfare and budget depend more strongly on the model parameterization.
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