 Endogenous Fertility and the Effects of Foreign AidMia Horn af Rantzien No 27, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics Abstract: An overlapping generations framework is employed in order to study consequences of the old-age security and producer goods motive for having children in a rural economy. The model predicts growth in total output combined with declining fertility and increasing population density and per capita output, if landholdings are initially greater than in stationary state. An increase in agricultural productivity, a decrease in the cost of raising children, and a transfer to adults increase fertility in the short run, while a transfer to the old decrease it. In stationary state, permanent positive productivity shifts cause higher population density but leave per capita consumption unchanged. Permanent reductions in the cost of raising children and permanent increases in transfers to adults reduce per capita consumption and increase population density, while permanent increases in transfers to the old have the opposite effect in the new stationary state. Keywords: Endogenous fertility; foreign aid; population old age security (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0027 Access Statistics for this paper More papers in SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden. Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.