Fertility choice and financial development

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe study the consequences of broader access to credit and to capital markets on household's decisions over the number of children. In a life-cycle model of choice with forward and backward caring between parents and children, we analyze the effects of relaxing adults' borrowing constrains and broadening the opportunities for financial investment, and show how the sign of these effects depends on the role of children as a normal or inferior good in parents' preferences. We estimate the quantitative implications of our theoretical model on data from 145 countries over the period 1980-2006. Empirical results indicate that improved access to credit reduces fertility in poor countries and increases fertility in high-income countries. The effect of the development of capital markets on the number of children is negative in low-income countries and positive in the rich. When the analysis includes public pensions the main results remain the same. We also estimate the effect of the real interest rate, which proves significant and negative. JEL Codes: D1, J13, G1.

Fertility and Financial Development in South Asia

“…Recently, Basso et al (2014) have shown that the presence of a bank and the degree of financial development in a given county are strongly associated with lower children-towomen ratios. Using data for 78 countries over the period 1995-2010, Filoso and Papagni (2015) find that credit availability increases fertility, while access to capital market decreases fertility. However, the net effect of financial variables is positive since credit Fertility and Financial Development in South Asia availability increases fertility much more than access to capital markets reduces it.…”

“…However, the magnitude of this decline is different in different countries. The decline in fertility is high in developed countries compared to developing countries (Filoso and Papagni 2015). This decrease in fertility has been analyzed both in economics and demography.…”

“…For instance, seeGalasso et al (2009) andFiloso and Papagni (2015).10 Previous studies have also used secondary school enrolment as indicator of education. For instance, seePellegrini and Gerlegh (2004) andTavares and Wacziarg (2001).…”

Management of Early Menopause Using Traditional Persian Medicine: A Case Report

“…During the past few decades, the rate of fertility has dramatically reduced in all the countries worldwide. However, the magnitude of such a decline varies in various countries (1). Early menopause and abnormal early infertility can affect self-efficacy and self-esteem (2).…”

Impact of remittances on fertility

“…For example, when faced with a health-related shock, Mexican households with at least one member living in the US did not resort to borrowing, but instead relied on remittance inflows. Easier access to this informal source of credit (or credit expansion) also allows for greater incentives for debt accumulation to invest in more children as a hedge against future bad times [5]. Receiving households use these current remittance flows, from the first household members who emigrated, to invest in more children who will in turn offer old-age support for the remaining household members.…”