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A Basic Model of Take-Off and Fertility Choices in the Economic Development Process

Author

Listed:
  • Edgardo Bucciarelli

    (University of Chieti-Pescara, Department of Quantitative Methods and Economic Theory)

  • Gianfranco Giulioni

    (University of Chieti-Pescara, Department of Quantitative Methods and Economic Theory)

Abstract

We present a simple model in which the transition from Malthusian stagnation to modern growth can occur. Agents are endowed with full control over their fertility but, differently from other studies, the degree of agents’ altruism which mainly affects fertility choices is allowed to change with the standard of living. We relate agents’ altruism to the marginal utility of consumption. The occurrence of take-off and the balanced growth path of the model are analyzed. Our model also provides for a potential explanation to the J-shaped relationship between natality rates and standard of living found by recent empirical studies.

Suggested Citation

  • Edgardo Bucciarelli & Gianfranco Giulioni, 2011. "A Basic Model of Take-Off and Fertility Choices in the Economic Development Process," Rivista di Politica Economica, SIPI Spa, issue 2, pages 125-148, April-Jun.
    • Handle: RePEc:rpo:ripoec:y:2011:i:2:p:125-148
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    References listed on IDEAS

    as
    1. Gary S. Becker & Kevin M. Murphy & Robert Tamura, 1994. "Human Capital, Fertility, and Economic Growth," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 323-350, National Bureau of Economic Research, Inc.
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    4. Barro, Robert J & Becker, Gary S, 1989. "Fertility Choice in a Model of Economic Growth," Econometrica, Econometric Society, vol. 57(2), pages 481-501, March.
    5. Avner Ahituv & Joseph Zeira, 2011. "Technical Progress and Early Retirement," Economic Journal, Royal Economic Society, vol. 121(551), pages 171-193, March.
    6. Galor, Oded, 2005. "From Stagnation to Growth: Unified Growth Theory," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 4, pages 171-293, Elsevier.
    7. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
    8. Morand, Olivier F, 1999. "Endogenous Fertility, Income Distribution, and Growth," Journal of Economic Growth, Springer, vol. 4(3), pages 331-349, September.
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    More about this item

    Keywords

    malthusian stagnation; modern growth; increasing marginal utility; development process; fertility choices;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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