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Mortality, the Trade-off between Child Quality and Quantity, and Demo-economic Development

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Author Info
Holger Strulik

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Abstract

An economy is investigated where parents observe wage rates, interest rates and child mortality and decide about savings and the quantity and quality of their children. Expenditure on child quality causes human capital accumulation as an external effect. If mortality is high parents prefer to have many children and spend only essential rearing effort. Without human capital accumulation the economy may stabilize in an equilibrium of economic stagnation and high population growth. If mortality is low parents prefer to have only few children and spend comparatively large fractions of income on their quality. With human capital accumulation the economy is capable of long-run growth. The paper also shows the possibility of an endogenously explained demographic transition and a development aid program on education is discussed. Copyright Blackwell Publishing Ltd 2003.

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Article provided by Blackwell Publishing in its journal Metroeconomica.

Volume (Year): 54 (2003)
Issue (Month): 4 (November)
Pages: 499-520
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Handle: RePEc:bla:metroe:v:54:y:2003:i:4:p:499-520

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Tamura, Robert, 1996. "From decay to growth: A demographic transition to economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 20(6-7), pages 1237-1261. [Downloadable!] (restricted)
  2. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-84, August. [Downloadable!] (restricted)
  3. Robert Tamura, 2000. "Growth, fertility and human capital: A survey," Spanish Economic Review, Springer, vol. 2(3), pages 183-229. [Downloadable!] (restricted)
  4. Alexia Prskawetz & Gunter Steinmann & Gustav Feichtinger, 1998. "A model on the escape from the Malthusian trap," Journal of Population Economics, Springer, vol. 11(4), pages 535-550. [Downloadable!] (restricted)
  5. Alessandro Cigno, 1998. "Fertility decisions when infant survival is endogenous," Journal of Population Economics, Springer, vol. 11(1), pages 21-28. [Downloadable!] (restricted)
  6. Srinivasan, T.N. & Robinson, J.A., 1995. "Long-Term Consequences of Population Growth: Technological Change, Natural Resources, and the Environment," Papers 748, Yale - Economic Growth Center.
  7. Ehrlich, Isaac & Lui, Francis T, 1991. "Intergenerational Trade, Longevity, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 1029-59, October. [Downloadable!] (restricted)
  8. Robert J. Willis, 1979. "The Old Age Security Hypothesis and Population Growth," NBER Working Papers 0372, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Luciano Fanti & Luca Gori, 2008. "Child quality choice and fertility disincentives," Economics Bulletin, Economics Bulletin, vol. 10(7), pages 1-6. [Downloadable!]
  2. Luciano Fanti & Luca Gori, 2008. "Human capital, income, fertility and child policy," Economics Bulletin, Economics Bulletin, vol. 9(7), pages 1-7. [Downloadable!]
  3. Strulik, Holger & Weisdorf, Jacob, 2007. "The Simplest Unified Growth Theory," CEPR Discussion Papers 6528, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Sebnem Kalemli-Ozcan, 2008. "The uncertain lifetime and the timing of human capital investment," Journal of Population Economics, Springer, vol. 21(3), pages 557-572, July. [Downloadable!] (restricted)
  5. Holger Strulik & Jacob Weisdorf, 2008. "Population, food, and knowledge: a simple unified growth theory," Journal of Economic Growth, Springer, vol. 13(3), pages 195-216, September. [Downloadable!] (restricted)
  6. Jacob L. Weisdorf, 2007. "Malthus Revisited: Fertility Decision Making based on Quasi-Linear Preferences," Discussion Papers 07-03, University of Copenhagen. Department of Economics. [Downloadable!]
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