We present an alternative explanation of the positive relationship between total fertility rate (TFR) and female labor participation rate (FLPR) observed in recent cross section of OECD countries. We first use a general equilibrium model with vertical quality differentiation and heterogeneous labor and show how low fertility is associated with consumption of higher quality products. Then we use...

The accepted view among psychologists and economists alike is that economic well-being has a statistically significant but only weak effect on happiness/subjective well-being (SWB). This view is based almost entirely on weak relationships between household income and SWB. But income is clearly an imperfect measure of economic well-being. Also needed are measures of wealth (net worth) and consum...

In this paper we show that the within-country cooperative culture sustained by trust affects international cooperative behaviour. We focus on the role of social norms shared by trustworthy individuals and theoretically show how such norms can create incentives for trustworthy individuals to cooperate with foreigners even when they are unsure of the trustworthiness of their foreign partners via ...

We present an alternative explanation of the positive relationship between total fertility rate (TFR) and female labor participation rate (FLPR) observed in recent cross section of OECD countries. We first use a simple model of consumer behavior where consumption good is indexed by quality, both consumption and child rearing require time and a physical good as inputs. The model predicts that wh...