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Fertility Choice and Economic Growth: Theory and Evidence

Author

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  • Wang, P.
  • Yip, C.K.
  • Scotese, C.A.

Abstract

This paper examines a growth model with endogenous consumption, labor-leisure, and fertility. A fertility choice variable capturing both the quality and quantity of the family size enters the utility function positively but also generates time costs. Theoretical comparative dynamic results are derived for changes in exogenous production and utility parameters. Employing post-World War II U.S. data, the authors estimate the model using a structural vector autoregression with imposed long-run restrictions based on the theoretical predictions. The empirical results lend support to the endogeneity of fertility choice and present dynamic responses of each endogenous variable to employment, fertility, and output shocks. Copyright 1994 by MIT Press.
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Suggested Citation

  • Wang, P. & Yip, C.K. & Scotese, C.A., 1991. "Fertility Choice and Economic Growth: Theory and Evidence," Papers 6-91-3, Pennsylvania State - Department of Economics.
    • Handle: RePEc:fth:pensta:6-91-3
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