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Population dynamics and marriage payments: an analysis of the long run equilibrium in India

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  • Maitra Sudeshna

    (Economics Department, York University, 4700 Keele St., Toronto, ON M3J 1P3, Canada, Phone: (+1) 416-258-9074)

Abstract

Why do scarce Indian women pay dowry to secure grooms even as the sex-ratio of offspring is manipulated by parents? We develop a dynamic general equilibrium model of demographic and marriage market outcomes with endogenous gender preference. We find, that under a calibration of parameters suggested by Indian marriage market indicators, any long run steady state equilibrium must have both dowry and a masculine sex ratio. The key assumption that generates this result is the asymmetric marital preferences of men and women regarding own and spouse’s ideal age at marriage.

Suggested Citation

  • Maitra Sudeshna, 2018. "Population dynamics and marriage payments: an analysis of the long run equilibrium in India," The B.E. Journal of Macroeconomics, De Gruyter, vol. 18(2), pages 1-26, June.
    • Handle: RePEc:bpj:bejmac:v:18:y:2018:i:2:p:26:n:8
    DOI: 10.1515/bejm-2017-0191
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    References listed on IDEAS

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