• Graph: the microeconomic theory of fertility  number of desired children, Cd, is measured along the horizontal axis and the total quantity consumed by the parents by the vertical. O The steeper the slope of the budget constraint, the higher the relative price of children o Increase in income is a parallel shift in the BC, which means more. Resource congestion. It is parameterized using a combination of microeconomic evidence and economic theory. Throughout the paper, our focus is on giving a quantitative analysis of changes in fertility, so that we can estimate how much extra output a given fertility change will produce over a speci–c time period.

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