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Endogenous fertility in a growth model with public and private health expenditures

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  • Dimitrios Varvarigos
  • Intan Zakaria

Abstract

We build an overlapping-generations model that incorporates endogenous fertility choices, in addition to public and private expenditures on health. Following the seminal analysis of Bhattacharya and Qiao (J Econ Dyn Control 31:2519–2535, 2007 ) we assume that the effect of public health investment is complementary to private health expenditures. We find that this effect reinforces the positive impact of the capital stock on aggregate saving. Furthermore, we show that this complementarity can provide an additional explanation behind a salient feature of demographic transition; that is, the fertility decline along the process of economic growth. Copyright Springer-Verlag 2013

Suggested Citation

  • Dimitrios Varvarigos & Intan Zakaria, 2013. "Endogenous fertility in a growth model with public and private health expenditures," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(1), pages 67-85, January.
    • Handle: RePEc:spr:jopoec:v:26:y:2013:i:1:p:67-85
    DOI: 10.1007/s00148-012-0412-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Fertility; Economic growth; Health expenditures; J13; O41;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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