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The Economic Foundations of Demographic Transition

Author

Listed:
  • Rodrigo Cerda

    (Instituto de Economía. Pontificia Universidad Católica de Chile.)

Abstract

The paper develops a general equilibrium model where population sources, such as fertility and mortality rates, are chosen variables. It is shown that the evolution of population over time depends on income and relative prices of mortality and fertility rates. Initially as a country develops, countries should face a period with increasing fertility and higher population growth rates but later fertility and population growth rate should decrease as their relative prices increase. It is also shown that multiple equilibria may arise. An equilibrium with low levels of asset will have lower per capita income, but larger fertility, mortality and population growth rates.

Suggested Citation

  • Rodrigo Cerda, 2002. "The Economic Foundations of Demographic Transition," Documentos de Trabajo 208, Instituto de Economia. Pontificia Universidad Católica de Chile..
    • Handle: RePEc:ioe:doctra:208
    as

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    File URL: https://www.economia.uc.cl/docs/doctra/dt-208.pdf
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    References listed on IDEAS

    as
    1. Palivos, Theodore, 1995. "Endogenous fertility, multiple growth paths, and economic convergence," Journal of Economic Dynamics and Control, Elsevier, vol. 19(8), pages 1489-1510, November.
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    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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