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Variety expansion and fertility rates

  • Akiko Maruyama
  • Kazuhiro Yamamoto

    ()

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. In addition, we show that international trade, which raises consumption variety, lowers fertility rates. Thus, we show a new mechanism for fertility decline, and this mechanism can be applied to growth and international trade models.

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File URL: http://hdl.handle.net/10.1007/s00148-008-0223-6
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Article provided by European Society for Population Economics in its journal Journal of Population Economics.

Volume (Year): 23 (2010)
Issue (Month): 1 (January)
Pages: 57-71

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Handle: RePEc:spr:jopoec:v:23:y:2010:i:1:p:57-71
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