Simulation Model of Fertility’s Effects on Economic Growth

Last updated December 2010

Authors:
Quamrul Ashraf, David Weil, Joshua Wilde

Abstract:
This research program aims to increase the understanding of how economy-wide policy interventions aimed at reducing fertility contribute to long-term economic growth. Specifically, we employ an economic-demographic simulation model to provide a quantitative assessment of the effect of exogenous reductions in fertility on output per capita. Using well-identified microeconomic estimates to build macroeconomic projections, our simulation model incorporates various channels through which a reduction in the total fertility rate affects output per capita, including changes in demographic structure, educational attainment, labor supply, the rate of capital accumulation, changes in parental resources devoted to childrearing, and crowding of fixed natural resources.

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