Population control policies keep attracting attention: by increasing the household size, having more children would directly contribute to a household's poverty. Using nationally representative household level data from Nepal, we investigate the links between a household's fertility decisions and variations in their size and composition. We show that the relationship between number of births and household size is positive when the mothers are young, but becomes negative as the mothers grow older. Elderly couples who had fewer children host, on average, more relatives who are outside the immediate family unit. This result sheds light on the heterogeneous relation between the number of children and household size over the life cycle. It also implies that reductions in a household's fertility may have an ambiguous impact on its per capita consumption, which depends on how the household's composition responds to new births and changes over time: in this sample, an old household's per capita consumption is not affected by the number of births. We use the gender of the first-born child to instrument the total number of consecutive children.

In this article, we describe the Stata implementation of Baltagi and Li's (2002, Annals of Economics and Finance 3: 103-116) series estimator of partially linear panel-data models with fixed effects. After a brief description of the estimator itself, we describe the new command xtsemipar. We then simulate data to show that this estimator performs better than a fixed-effects estimator if the relationship between two variables is unknown or quite complex.

We investigate the relation between economic growth, household firewood collection and forest conditions in Nepal between 2003 and 2010. Co-movements in these are examined at the household and village levels, combining satellite imagery and household (Nepal Living Standard Measurement Survey) data. Projections of the impact of economic growth based on Engel curves turn out to be highly inaccurate: forest conditions remained stable despite considerable growth in household consumption and income. Firewood collections at the village level remained stable, as effects of demographic growth were offset by substantial reductions in per-household collections. Households substituted firewood by alternative energy sources, particularly when livestock and farm based occupations declined in importance. Engel curve specifications which include household productive assets (a proxy for occupational patterns) provide more accurate predictions. Hence structural changes accompanying economic growth play an important role in offsetting adverse environmental consequences of growth.

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