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Milligan Summary

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Economics (Arts)
ECON 426
Sonya Laszlo

SUMMARY Title: Subsidizing the Stork: New Evidence on Tax Incentives and Fertility Authors: Kevin Milligan Source: The Review of Economics and Statistics Date: Aug 2005 Keywords: Pre-natal income transfer, Main hypotheses/questions: • Does the pre-natal transfer make fertility more likely? • Specifically, does making the ability to have kids cheaper produce more of them • We need to find a situation in which we can observe exogenous varation in the price / income concepts • Structure of ANP allows for the formation of treatment and control groups defined by time, jurisdiction and family type • Also, the fact that the subsidiaiton policy is not tied together with other incentives such as food stamps; makes the causal attriuction of behavioural changes to incetve more credible Main results: • Strong, robot and posibie effect of the policy on fertility • Some heterogeneity: famalies with higher incoe show a stronger response Literature review: • Cite: Becker (1960) on the economic m
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