distortionary taxes and subsidies on welfare level and growth rate. For the effects on welfare,
the paper constructs an overlappingYgenerations general equilibrium model with
endogenous fertility. If the distortionary tax (or subsidy) on the time cost of fertility is greater
than that on the good cost, the welfare loss inY creases with the level of development of the
economy. For the effects on growth, the paper constructs an overlappingYgenerations …