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One Explanation for the Demographic Transition in Developing Countries

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  • Eswaran, Mukesh

Abstract

This paper considers, in an overlapping generations model, the fertility choice of parents confronted with the possibility of child mortality. The motive for having children is assumed to be old age security and, therefore, not altruistic. It is shown first, in a partial equilibrium setting, that reductions in child mortality can induce a demographic transition. In a general equilibrium setting, it is shown that a marginal reduction in child morality can raise or lower the standard of living of the steady-state equilibrium population, depending on the initial level of child mortality. Finally the paper draws some relevant policy implications. Copyright 1998 by Royal Economic Society.

Suggested Citation

  • Eswaran, Mukesh, 1998. "One Explanation for the Demographic Transition in Developing Countries," Oxford Economic Papers, Oxford University Press, vol. 50(2), pages 237-265, April.
    • Handle: RePEc:oup:oxecpp:v:50:y:1998:i:2:p:237-65
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    Cited by:

    1. Regalia, Ferdinando & Connors, Ellen & Oliva, Carlos & Legovini, Arianna & Duryea, Suzanne & Stein, Ernesto H. & Álvarez, Carola & Mcphail, Heather & Deutsch, Ruthanne & Chakraborty, Shanka & Lustig, , 2000. "Social Protection for Equity and Growth," IDB Publications (Books), Inter-American Development Bank, number 454, November.
    2. Holger Strulik, 2004. "Economic growth and stagnation with endogenous health and fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(3), pages 433-453, August.
    3. Ferdinando Regalia & Ellen Connors & Carlos Oliva & Arianna Legovini & Suzanne Duryea & Ernesto H. Stein & Carola Álvarez & Heather Mcphail & Ruthanne Deutsch & Shanka Chakraborty & Nora Lustig & Rube, 2000. "Social Protection for Equity and Growth," IDB Publications (Books), Inter-American Development Bank, number 80143, February.
    4. Appelbaum, Elie & Katz, Eliakim, 1991. "The Demand for Children in the Absence of Capital and Risk Markets: A Portfolio Approach," Oxford Economic Papers, Oxford University Press, vol. 43(2), pages 292-304, April.
    5. Schäfer, Andreas & Valente, Simone, 2011. "Habit Formation, Dynastic Altruism, And Population Dynamics," Macroeconomic Dynamics, Cambridge University Press, vol. 15(3), pages 365-397, June.

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