Humanitarian Aid, Fertility, and Economic Growth
AbstractThis paper examines the e¤ect of humanitarian aid on the rates of fertility and economic growth in recipient countries. We develop a two-period overlapping generations model where reproductive agents face a non-zero probability of death in childhood. As adults, agents allocate their time to work, leisure, and child rearing activities of surviving children. Health status in adulthood exhibits “state dependence”as it depends on health in childhood. Humanitarian aid in‡uences the probability of survival to adulthood, health in childhood, and the time adults allocate to child rearing, giving rise to an ambiguous e¤ect on both the rates of fertility and growth. An empirical examination for the period 1973-2007 suggests that humanitarian aid has on average a zero e¤ect on both the fertility rate and the rate of per capita output growth. The …ndings are robust to a wide number of sensitivity considerations.
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Bibliographic InfoPaper provided by Economics, The Univeristy of Manchester in its series Centre for Growth and Business Cycle Research Discussion Paper Series with number 139.
Length: 42 pages
Date of creation: 2010
Date of revision:
Other versions of this item:
- NEP-ALL-2010-05-29 (All new papers)
- NEP-DGE-2010-05-29 (Dynamic General Equilibrium)
- NEP-FDG-2010-05-29 (Financial Development & Growth)
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