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Variety expansion and fertility rates

  • Akiko Maruyama

    ()

    (Population Research Institute, Nihon University)

  • Kazuhiro Yamamoto

    ()

    (Graduate School of Economics, Osaka University)

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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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
Contact details of provider: Web page: http://www.econ.osaka-u.ac.jp/
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  10. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  11. Oded Galor, 2006. "The Demographic Transition," Working Papers 2006-24, Brown University, Department of Economics.
  12. 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.
  13. Sato, Yasuhiro & Yamamoto, Kazuhiro, 2005. "Population concentration, urbanization, and demographic transition," Journal of Urban Economics, Elsevier, vol. 58(1), pages 45-61, July.
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  16. repec:rus:hseeco:122439 is not listed on IDEAS
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