To raise fertility, the intensive margin—average family size—matters most. Families respond to lived experiences, and excluding mothers from adult life creates a hold-up. To reverse the decline in births, mothers' happiness is imperative. This requires genuine, not just rhetorical, inclusivity.
The hold-up problem derives from ideas in game theory. It tells the story of a worthwhile investment that did not come to pass because its beneficiary could not commit to not exploiting the investor once an investment was made. To theorists, it underlines the importance of commitment and contractual enforcement. It has been invoked in … Continue reading About this blog
