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Endogenous fertility in a growth model with public and private health expenditures

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  • Dimitrios Varvarigos

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  • Intan Zakaria

Abstract

We build an overlapping-generations model that incorporates endogenous fertility choices, in addition to public and private expenditures on health. Following the seminal analysis of Bhattacharya and Qiao (J Econ Dyn Control 31:2519–2535, 2007 ) we assume that the effect of public health investment is complementary to private health expenditures. We find that this effect reinforces the positive impact of the capital stock on aggregate saving. Furthermore, we show that this complementarity can provide an additional explanation behind a salient feature of demographic transition; that is, the fertility decline along the process of economic growth. Copyright Springer-Verlag 2013

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Bibliographic Info

Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 26 (2013)
Issue (Month): 1 (January)
Pages: 67-85

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Handle: RePEc:spr:jopoec:v:26:y:2013:i:1:p:67-85

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Related research

Keywords: Fertility; Economic growth; Health expenditures; J13; O41;

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References

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  1. Galor, Oded & Weil, David, 1995. "The Gender Gap, Fertility and Growth," CEPR Discussion Papers 1157, C.E.P.R. Discussion Papers.
  2. Bhattacharya, Joydeep & Qiao, Xue, 2005. "Public and Private Expenditures on Health in a Growth Model," Staff General Research Papers 12378, Iowa State University, Department of Economics.
  3. Pitt, Mark M. & Rosenzweig, Mark R. & Hassan, Md. Nazmul, 1989. "Productivity, Health and Inequality in the Intrahousehold Distribution of Food in Low-Income Countries," Bulletins 7480, University of Minnesota, Economic Development Center.
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  7. Oded Galor, 2012. "The demographic transition: causes and consequences," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(1), pages 1-28, January.
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  11. Ehrlich, Isaac & Lui, Francis, 1997. "The problem of population and growth: A review of the literature from Malthus to contemporary models of endogenous population and endogenous growth," Journal of Economic Dynamics and Control, Elsevier, vol. 21(1), pages 205-242, January.
  12. Strulik, Holger, 2008. "Geography, health, and the pace of demo-economic development," Journal of Development Economics, Elsevier, vol. 86(1), pages 61-75, April.
  13. Sebnem Kalemli-Ozcan, 2002. "A Stochastic Model of Mortality, Fertility, and Human Capital Investment," Macroeconomics 0212009, EconWPA.
  14. Mar�A-José Gutiérrez, 2008. "Dynamic Inefficiency in an Overlapping Generation Economy with Pollution and Health Costs," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(4), pages 563-594, 08.
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Cited by:
  1. Dimitrios Varvarigos, 2013. "A Theory of Demographic Transition and Fertility Rebound in the Process of Economic Development," Discussion Papers in Economics 13/19, Department of Economics, University of Leicester.

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