De Economist 153, 2005, pp. 1-45; Tinbergen Lectures (Authorised Abstract; Preliminary Version).
This paper considers the economic implications of the stalling birth rates and demographic development in Europe. To remedy for this it proposes a child pension system. This system allowsadditional pension facilities depending on the number of children raised. It should be a PAYGpension financed with an income tax. The main motivation for this is that parents have invested resources which also benefit society.