Fertility and Savings in a Two-Period Household Model: A Theoretical and Empirical Analysis
Year: 1982
Type: report
Study design: Observational Study
Abstract: Fertility and Savings in a Two-Period Household Model: A Theoretical and Empirical Analysis" An attempt is made in this paper to develop a two-period model of a rural household in a less-developed country in which the savings and fertility decisions are treated as jointly-determined parental decisions influenced by a conn:non set of prices, wages, and fixed factors.The implications from the theoretical model are then tested with 1970-71 household survey data from India.The results generally lend support to a model of joint fertility-savings determination.In particular, the effect of the interest rate on fertility is observed to be significant and positive, implying a wealth effect of an increase in the interest rate that dominates the substitution effect.The effect of wages earned by children on savings is, however, observed to be negative, indicating that parents substitute children for physical savings as child wages increase.The model generally indicates the importance of prices and wages in the fertility and savings decisions of Indian rural households.
Source: Econstor (Econstor)
Author: Deolalikar, Anil B.
Language: English
Subfield: Gender Studies
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6991096144