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Variety expansion and fertility rates

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  • Akiko Maruyama

    ()
    (Population Research Institute, Nihon University)

  • Kazuhiro Yamamoto

    ()
    (Graduate School of Economics, Osaka University)

Abstract

To investigate how fertility rates interrelate with the modern economy, we construct a simple model in which variety expansion of consumption goods reduces fertility rates. In our model, variety expansion reduces the relative price of a composite of differentiated goods compared to child- rearing costs. Thus, parents raise the expenditure share for differentiated goods and lower the number of children. We show that this model can be applied to a growth model in which economic growth progresses with variety expansion of consumption goods and fertility rates decrease with economic growth. Thus, we show a new mechanism for fertility decline, and this mechanism can be applied to a growth model.

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File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0729R3.pdf
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Bibliographic Info

Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 07-29-Rev.3.

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Length: 17 pages
Date of creation: Jul 2007
Date of revision: Feb 2010
Handle: RePEc:osk:wpaper:0729r3

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Web page: http://www.econ.osaka-u.ac.jp/
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Keywords: Consumerism; Fertility rates; Variety expansion; Economic growth;

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References

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  1. Becker, Gary S & Murphy, Kevin M & Tamura, Robert, 1990. "Human Capital, Fertility, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S12-37, October.
  2. Kalemli-Ozcan, Sebnem & Ryder, Harl E. & Weil, David N., 2000. "Mortality decline, human capital investment, and economic growth," Journal of Development Economics, Elsevier, vol. 62(1), pages 1-23, June.
  3. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  4. Oded Galor, 2006. "The Demographic Transition," Working Papers 2006-24, Brown University, Department of Economics.
  5. Oded Galor & David N. Weil, 1998. "Population, Technology, and Growth: From the Malthusian Regime to the Demographic Transition," Working Papers 98-1, Brown University, Department of Economics, revised 19 Aug 1998.
  6. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
  7. Kalemli-Ozcan, Sebnem, 2003. "A stochastic model of mortality, fertility, and human capital investment," Journal of Development Economics, Elsevier, vol. 70(1), pages 103-118, February.
  8. Galor, Oded & Weil, David, 1995. "The Gender Gap, Fertility and Growth," CEPR Discussion Papers 1157, C.E.P.R. Discussion Papers.
  9. Galor, Oded, 2004. "From Stagnation to Growth: Unified Growth Theory," CEPR Discussion Papers 4581, C.E.P.R. Discussion Papers.
  10. repec:rus:hseeco:122439 is not listed on IDEAS
  11. Sato, Yasuhiro & Yamamoto, Kazuhiro, 2005. "Population concentration, urbanization, and demographic transition," Journal of Urban Economics, Elsevier, vol. 58(1), pages 45-61, July.
  12. Tamura, Robert, 2002. "Human capital and the switch from agriculture to industry," Journal of Economic Dynamics and Control, Elsevier, vol. 27(2), pages 207-242, December.
  13. Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
  14. Eckstein, Zvi & Wolpin, Kenneth I., 1985. "Endogenous fertility and optimal population size," Journal of Public Economics, Elsevier, vol. 27(1), pages 93-106, June.
  15. Oded Galor & Andrew Mountford, 2006. "Trade and the Great Divergence: The Family Connection," American Economic Review, American Economic Association, vol. 96(2), pages 299-303, May.
  16. Sebnem Kalemli-Ozcan, 2002. "Does the Mortality Decline Promote Economic Growth?," Macroeconomics 0212008, EconWPA.
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Cited by:
  1. Hiroshi Goto & Keiya Minamimura, 2014. "Fertility, Regional Demographics, and Economic Integration," Discussion Papers 1405, Graduate School of Economics, Kobe University.
  2. Tadashi Morita & Kazuhiro Yamamoto, 2013. "Economic geography, endogenous fertility, and agglomeration," Discussion Papers in Economics and Business 13-23, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  3. Koji Kitaura & Akira Yakita, 2010. "School Education, Learning-by-Doing, and Fertility in Economic Development," Review of Development Economics, Wiley Blackwell, vol. 14(4), pages 736-749, November.

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