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Variety expansion and fertility rate

Author

Listed:
  • Akiko Maruyama

    (Graduate School of Economics, Kwansei Gakuin University)

  • Kazuhiro Yamamoto

    (Graduate School of Economics, Osaka University)

Abstract

To investigate how fertility rates interrelate with the modern economy, we construct a simple model in which variety expansion of consumption goods reduces fertility rates. In our model, variety expansion reduces the relative price of a composite of di?erentiated goods compared to child- rearing costs. Thus, parents raise the expenditure share for differentiated goods and lower the number of children. We show that this model can be applied to a growth model in which economic growth progresses with variety expansion of consumption goods and fertility rates decrease with economic growth. In addition, we show that international trade, which raises consumption variety, lowers fertility rates. Thus, we show a new mechanism for fertility decline, and this mechanism can be applied to growth and international trade models.

Suggested Citation

  • Akiko Maruyama & Kazuhiro Yamamoto, 2007. "Variety expansion and fertility rate," Discussion Papers in Economics and Business 07-29-Rev, Osaka University, Graduate School of Economics, revised Jan 2008.
  • Handle: RePEc:osk:wpaper:0729r
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Tadashi Morita & Kazuhiro Yamamoto, 2013. "Economic geography, endogenous fertility, and agglomeration," Discussion Papers in Economics and Business 13-23, Osaka University, Graduate School of Economics.
    2. Miyake, Yusuke, 2022. "Endogenous childcare costs in R&D based model," MPRA Paper 112491, University Library of Munich, Germany.
    3. Koichi Futagami & Kunihiko Konishi, 2019. "Rising longevity, fertility dynamics, and R&D-based growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(2), pages 591-620, April.
    4. Hiroshi Goto & Keiya Minamimura, 2014. "Fertility, Regional Demographics, and Economic Integration," Discussion Papers 1405, Graduate School of Economics, Kobe University.
    5. Hiroshi Goto & Keiya Minamimura, 2019. "Geography and Demography: New Economic Geography with Endogenous Fertility," The Japanese Economic Review, Springer, vol. 70(4), pages 537-568, December.
    6. Ratbek Dzhumashev & Ainura Tursunalieva, 2023. "Social externalities, endogenous childcare costs, and fertility choice," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 397-429, January.
    7. Koji Kitaura & Akira Yakita, 2010. "School Education, Learning‐by‐Doing, and Fertility in Economic Development," Review of Development Economics, Wiley Blackwell, vol. 14(4), pages 736-749, November.
    8. Tohru Naito & Tatsuya Omori, 2016. "Household's disaster prevention activities, agglomeration and economic growth," Regional Science Policy & Practice, Wiley Blackwell, vol. 8(4), pages 177-195, November.
    9. Hiroshi Goto & Keiya Minamimura, 2015. "Geography and Demography: New Economic Geography with Endogenous Fertility," Discussion Paper Series DP2015-33, Research Institute for Economics & Business Administration, Kobe University.
    10. Hiroaki Ohno & Kouki Sugawara, 2016. "Variety expansion, preference shocks, and financial intermediaries," Annals of Finance, Springer, vol. 12(1), pages 17-28, February.
    11. Tadashi Morita & Kazuhiro Yamamoto, 2018. "Interregional Fertility Differentials and Agglomeration," The Japanese Economic Review, Springer, vol. 69(2), pages 171-188, June.
    12. Miyake, Yusuke, 2022. "Endogenous childcare costs in R&D based model," MPRA Paper 112489, University Library of Munich, Germany.

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    More about this item

    Keywords

    Fertility rates; Variety expansion; Economic growth; Interna- tional trade;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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