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

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  • Holger Strulik

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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Bibliographic Info

Article provided by Wiley Blackwell 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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  1. Nerlove, Marc & Raut, Lakshmi K., 1993. "Growth models with endogenous population: A general framework," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 20, pages 1117-1174 Elsevier.
  2. Robert J. Barro, 2012. "Inflation and Economic Growth," CEMA Working Papers 568, China Economics and Management Academy, Central University of Finance and Economics.
  3. David K. Backus & Patrick J. Kehoe & Timothy J. Kehoe, 1992. "In search of scale effects in trade and growth," Staff Report 152, Federal Reserve Bank of Minneapolis.
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Cited by:
  1. repec:ebl:ecbull:v:9:y:2008:i:7:p:1-7 is not listed on IDEAS
  2. Strulik, Holger & Weisdorf, Jacob, 2007. "The Simplest Unified Growth Theory," CEPR Discussion Papers 6528, C.E.P.R. Discussion Papers.
  3. Weisdorf, Jacob L., 2008. "Malthus revisited: Fertility decision making based on quasi-linear preferences," Economics Letters, Elsevier, vol. 99(1), pages 127-130, April.
  4. Herzer, Dierk & Strulik, Holger & Vollmer, Sebastian, 2010. "The Long-run Determinants of Fertility: One Century of Demographic Change 1900-1999," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Leibniz Universität Hannover dp-456, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  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.
  6. Luca Spataro & Luciano Fanti, 2011. "The Optimal Level of Debt in an OLG Model with Endogenous Fertility," German Economic Review, Verein für Socialpolitik, vol. 12(3), pages 351-369, 08.
  7. repec:ebl:ecbull:v:10:y:2008:i:7:p:1-6 is not listed on IDEAS
  8. Fanti Luciano e Spataro Luca, 2009. "Fertility and public debt," Discussion Papers 2009/89, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy.
  9. Tamara Fioroni, 2010. "Child mortality and fertility: public vs private education," Journal of Population Economics, Springer, vol. 23(1), pages 73-97, January.

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