A contribution to the economic theory of fertility

dc.contributor.author Cordoba, Juan Carlos
dc.contributor.author Ripoll, Marla
dc.contributor.author Cordoba, Juan Carlos
dc.contributor.department Economics
dc.date 2018-02-17T17:36:45.000
dc.date.accessioned 2020-06-30T02:13:34Z
dc.date.available 2020-06-30T02:13:34Z
dc.date.issued 2011-06-20
dc.description.abstract <p>The evidence strongly suggests a robust negative relationship between income and fertility, and a positive relationship between income and longevity. This is puzzling for standard dynamic models. For instance, altruistic models that use the most standard preferences in macro --time separable CRRA with low elasticity of intertemporal substitution (EIS)-- correctly predict a positive longevity-income relationship for rich individuals, but also predict a positive fertility-income relationship, contrary to the data. We show that a non-separable formulation of preferences that allows for a low EIS but a high "elasticity of intergenerational substitution" (EGS) can simultaneously account for the evidence of declining demand for children and increasing demand for longevity as income increases. The model with a single elasticity cannot account for both. Our results suggests a major role for a new parameter in macro, the EGS. While the EIS mostly influences short-term economic decisions, the EGS influences mostly long-term economic choices.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_workingpapers/96/
dc.identifier.articleid 1095
dc.identifier.contextkey 8642017
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_workingpapers/96
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/22567
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_workingpapers/96/p13899_2011_06_20.pdf|||Sat Jan 15 02:35:16 UTC 2022
dc.subject.disciplines Economics
dc.subject.keywords parental altruism
dc.subject.keywords non-separable utility
dc.subject.keywords elasticity of intertemporal substitution
dc.subject.keywords elasticity of intergeneraltional substitution
dc.subject.keywords fertility
dc.subject.keywords altruism
dc.subject.keywords non-separable preferences
dc.subject.keywords frictions
dc.title A contribution to the economic theory of fertility
dc.type article
dc.type.genre working_paper
dspace.entity.type Publication
relation.isAuthorOfPublication 20eac82c-934e-41d3-8c54-07712a42759a
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
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