Maruyama, Akiko

Yamamoto, Kazuhiro

To investigate how fertility rates interrelate with the modern economy,we construct a simple model in which variety expansion of consumptiongoods reduces fertility rates. In our model, variety expansion reduces therelative price of a composite of di¤erentiated goods compared to child-rearing costs. Thus, parents raise the expenditure share for di¤erentiatedgoods and lower the number of children. We show that this model canbe applied to a growth model in which economic growth progresses withvariety expansion of consumption goods and fertility rates decrease witheconomic growth. Thus, we show a new mechanism for fertility decline,and this mechanism can be applied to a growth model.* Revised: Variety expansion and fertility rate [07-29-Rev., 2008]* Revised: [07-29-Rev3, 2010

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Variety expansion and fertility rates

http://www2.econ.osaka-u.ac.jp/library/global/dp/0729R3.pdf

Variety expansion and fertility rates

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