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Consequences of Permanent Changes in Child Mortality on Parental Welfare and Population Density

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  • Horn af Rantzien, Mia

Abstract

In an overlapping generations framework, the effects of exogenous changes in child mortality on fertility and parental welfare in the short run and on fertility, population density and parental welfare in the long run is analyzed in a primitive, land-constrained economy. In a first step a perfectly foreseen rate of survival of children into adulthood is analyzed. It is shown that a decrease in child mortality always increase parental welfare in the short run while the direction of the change in fertility choice depends on the relative risk aversion. In the long run, however, parental welfare is reduced independently of the degree of the relative risk aversion. In a second step, uncertainty about the survival rate is considered. It is shown that the effects on fertility choice in the short run and on population density in the long run remains qualitatively the same as in the case with a perfectly foreseen survival rate.

Suggested Citation

  • Horn af Rantzien, Mia, 1994. "Consequences of Permanent Changes in Child Mortality on Parental Welfare and Population Density," SSE/EFI Working Paper Series in Economics and Finance 29, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0029
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    More about this item

    Keywords

    Endogenous fertility; child mortality; old age security; farm size;

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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