Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Jul, 1972, Volume 40, Issue 4

A Cost-Inclusive Simultaneous Equation Model of Birth Rates<681:ACSEMO>2.0.CO;2-E
p. 681-687

Benjamin Cheng, John M. Campbell, Paul R. Gregory

In this paper, the authors develop a simultaneous equation model of birth rates composed of four estimated equations. This work differs from past research in that it considers the simultaneous relationship between birth rates and income and includes the cost of fertility as an explanatory factor. This cost is measured by the female labor participation rate under the assumption that income foregone due to fertility is a significant opportunity cost.

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