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Fertility Regulation in an Economic Crisis

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  • Christopher McKelvey
  • Duncan Thomas
  • Elizabeth Frankenberg

Abstract

Substantial international aid is spent reducing the cost of contraception in developing countries as part of a larger effort to reduce global fertility and increase investment per child worldwide. The importance for fertility behaviors of keeping contraceptive prices low, however, remains unclear. Targeting of subsidies and insufficient price variation have hindered prior attempts to estimate the effect of monetary and nonmonetary contraceptive costs on fertility behavior. Using longitudinal survey data from the Indonesia Family Life Survey, we exploit dramatic variation in prices and incomes that was induced by the economic crisis in the late 1990s to pin down the effect of contraceptive availability and costs as well as household resources on contraceptive use and method choice. The results are unambiguous: monetary costs of contraceptives and levels of family economic resources have a very small (and well-determined) impact on contraceptive use and choice of method.

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File URL: http://www.jstor.org/stable/full/10.1086/666950
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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 61 (2012)
Issue (Month): 1 ()
Pages: 7 - 38

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Handle: RePEc:ucp:ecdecc:doi:10.1086/666950

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  1. Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers 99-04, RAND - Labor and Population Program.
  2. Gourieroux, Christian & Holly, Alberto & Monfort, Alain, 1982. "Likelihood Ratio Test, Wald Test, and Kuhn-Tucker Test in Linear Models with Inequality Constraints on the Regression Parameters," Econometrica, Econometric Society, vol. 50(1), pages 63-80, January.
  3. Shiffman, Jeremy, 2002. "The construction of community participation: village family planning groups and the Indonesian state," Social Science & Medicine, Elsevier, vol. 54(8), pages 1199-1214, April.
  4. Eric Jensen, 1996. "The fertility impact of alternative family planning distribution channels in Indonesia," Demography, Springer, vol. 33(2), pages 153-165, May.
  5. Rosenzweig, Mark R & Wolpin, Kenneth I, 1986. "Evaluating the Effects of Optimally Distributed Public Programs: ChildHealth and Family Planning Interventions," American Economic Review, American Economic Association, vol. 76(3), pages 470-82, June.
  6. Schultz, T Paul, 1969. "An Economic Model of Family Planning and Fertility," Journal of Political Economy, University of Chicago Press, vol. 77(2), pages 153-80, March/Apr.
  7. Paul Gertler & John Molyneaux, 1994. "How economic development and family planning programs combined to reduce indonesian fertility," Demography, Springer, vol. 31(1), pages 33-63, February.
  8. Pitt, Mark M & Rosenzweig, Mark R & Gibbons, Donna M, 1993. "The Determinants and Consequences of the Placement of Government Programs in Indonesia," World Bank Economic Review, World Bank Group, vol. 7(3), pages 319-48, September.
  9. John Akin & Jeffrey Rous, 1997. "Effect of provider characteristics on choice of contraceptive provider: A two-equation full-information maximum-likelihood estimation," Demography, Springer, vol. 34(4), pages 513-523, November.
  10. Schultz, T Paul, 1973. "Explanation of Birth Rate Changes over Space and Time: A Study of Taiwan," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S238-74, Part II, .
  11. Tobin, James, 1973. "Explanation of Birth Rate Changes over Space and Time: A Study of Taiwan: Comment," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S275-78, Part II, .
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