Template-Type: ReDIF-Paper 1.0 Author-Name: Federico Boffa Author-X-Name-First: Federico Author-X-Name-Last: Boffa Author-Email: federico.boffa@unibz.it Author-Workplace-Name: Free University of Bozen, IRCRES/CNR, Collegio Carlo Alberto Author-Name: Tommaso Reggiani Author-X-Name-First: Tommaso Author-X-Name-Last: Reggiani Author-Email: reggianit@cardiff.ac.uk Author-Workplace-Name: Cardiff University, Masaryk University, IZA Author-Name: Matteo Rizzolli Author-X-Name-First: Matteo Author-X-Name-Last: Rizzolli Author-Email: m.rizzolli@lumsa.it Author-Workplace-Name: LUMSA University, Rome, Italy Author-Name: Federico Trombetta Author-X-Name-First: Federico Author-X-Name-Last: Trombetta Author-Email: federico.trombetta@unicatt.it Author-Workplace-Name: DISEIS, Universita' Cattolica del Sacro Cuore, Milan, Italy Title: Changing Demography by Changing Democracy. Welfare and Fertility under Proxy Voting for Children Abstract: Proxy voting on behalf of children (also known as Demeny voting) has been proposed as a measure to contrast demographic decline in low-fertility countries. We study the effects of Demeny voting on fertility and budget allocation in the context of a probabilistic voting model. Citizens can vote to allocate the budget between either the production of a public good that results in immediate benefits for the present generation, or investment in a future-oriented public good that benefits the productivity of newborn children and society as a whole over time. Fertility is endogenous and disagreements arise between parents and non-parents over public spending. We show that proxy voting, by acting as a commitment device towards pro-children policies, increases fertility, future-oriented spending, such as early childhood investment and universal child care, and, under some conditions, increases long-term welfare for non-parents, thereby generating a Pareto improvement. Length: 53 pages Creation-Date: 2026-07 Publication-Status: File-URL: https://repec.lumsa.it/wp/wphurf02.pdf File-Format: Application/pdf Number: wphurf02 Classification-JEL: H31; H52; H63; I25; J13; J18; K16; D72; Q01 Keywords: Demeny voting; proxy voting; fertility; democracy Handle: RePEc:lsa:wphurf:wphurf02