The Macroeconomic Effects of the Two-Child Policy on Chinese Economy
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
I employ an overlapping generation model with the introduction of health care servicegood beside the generic consumption good to analyze the effect of the new implemented two child policy in China. In this model, the policy will increase the population growth rate and the amount of care purchase by the households. Given the Chinese cultural tradition the extra child is expected to provide some support to the parents. A numerical estimation has been run by calibrating the model to the macroeconomics variables on the labor share of the sectors, capital per worker and relative price of health care. The results suggest that the new policy is going towards rebalancing the economy. The Chinese policy makers are trying to raise the internal consumption to switch to a more sustainable model of growth braking down with years of export-led fast growth.
Place, publisher, year, edition, pages
Savings, overlapping generations, China, two child policy, imbalances
IdentifiersURN: urn:nbn:se:uu:diva-296486OAI: oai:DiVA.org:uu-296486DiVA: diva2:938548
Borota Milicevic, Teodora, Biträdande universitetslektor
Bengtsson, Niklas, Biträdande universitetslektor