Optimal lifecycle fertility in a Barro-Becker economy

Pierre Pestieau and Gregory Ponthiere

No 2012010, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: Parenthood postponement is a key demographic trend of the last three decades. In order to rationalize that stylized fact, we extend the canonical model by Barro and Becker (1989) to include two - instead of one - reproduction periods. We examine how the cost structure of early and late children in terms of time and goods affects the optimal fertility timing. Then, focusing a stationary equilibrium with stationary population, we provide two alternative explanations for the observed postponement of births: (1) a fall of the direct cost of late children (thanks to medical advances); (2) a rise in hourly productivity, which increases the (relative) opportunity costs of early children in comparison to late children.

Keywords: fertility; birth timing; population; dynastic altruism; OLG model (search for similar items in EconPapers)
JEL-codes: D10 J13 O40 (search for similar items in EconPapers)
Date: 2012-03-08
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Optimal life-cycle fertility in a Barro-Becker economy (2015)
Working Paper: Optimal life-cycle fertility in a Barro-Becker economy (2015)
Working Paper: Optimal life-cycle fertility in a Barro-Becker economy (2015)
Working Paper: Optimal life-cycle fertility in a Barro-Becker economy (2015)
Working Paper: Optimal Lifecycle Fertility in a Barro Becker Economy (2012)
Working Paper: Optimal Lifecycle Fertility in a Barro Becker Economy (2012)
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