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Consequences Of Changes In Fertility And Urbanization On Total Private Consumption

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  • Hananto Sigit

Abstract

This paper is an attempt to quantify and contrast the importance of the influence of urbanization and fertility reduction exert on consumption. All agree that urbanization will cause consumption to rise, since people having low consumption in rural areas will move to higher patterns in urban areas. On the other hand, little consensus exists yet among economists concerning the nature and importance of the effects of fertility reduction on consumption. In this case the matter is usually argued from the aspects of fertility reduction on savings. The majority believe in the increase of 7 savings as a result of slower population growth. A few, but notable group, of economists, however, strongly advocate the view that children are substitute for consumption. Reductions in fertility will thus increase per capita consumption, and consequently, savings will not be markedly increased.

Suggested Citation

  • Hananto Sigit, 1976. "Consequences Of Changes In Fertility And Urbanization On Total Private Consumption," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 24, pages 337-353, Desember.
    • Handle: RePEc:lpe:efijnl:197617
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