The cause of high fertility birth in developing

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The Cause of high Fertility (Birth) in Developing countries: (Malthusian and Household Models) The Malthusian Model Population trap NB. Point A and C is stable, B is unstable LDC countries need to a big push to raise their income per capita to point B, so that they can proceed to point C Two possible outcome: 1. Apply birth control, so that the population growth rate is lower than income growth rate 2. The development is limited by limited food supply and stay in the low equilibrium population trap (point A) Criticisms: Two problems i) Ignores the impact of technological progress: Rapid technological improvement upward shift income growth curve low equilibrium population trap disappear. ii) It assume that the population growth are related to the income per capita (i.e. at very low Income per capita(before point A), we should expect population growth rates increasing with increasing per capita income) But research indicates that there are NO clear correlations between population growth rates and levels of per capita income.
The Household Models The microeconomic Household Theory of Fertility + - + - C d = f( Y, P c , P x , t x ) C d = demand of surviving children ( E z ) Y = Income (higher income = greater demand) Pc = The “net” price of children (i.e. Cost – Children Benefit), so higher price = less demand Px = The others good related to children (i.e. substitute), higher substitute price = higher demand Tx = Taste of other good related to children (i.e. taste of substitute), stronger taste = less demand ( 7 Children) Why Low-Income countries would have a high birth-rate? 1. Children are a source of future financial, parents want to raise their income in future so they trends to have more children. On the other side, high income family may spend more on a child. 2. If a country has a high death rate, the family may produce more children than they desired, because they expect some of them may not survive.

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