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Why is rapid population growth in developing countries so often a source of concern for policy
makers and researchers? How does the growth in world population today differ from the
historical increase in population growth in the currently developed countries, say, two centuries
ago?
ALSO
How does population growth affect savings
Fast population growth higher dependency ratio lower per capita savings
BUT
Empirical link between population growth and savings rate unestablished in LDCs
4. Impact on renewable resources: tragedy of the commons, incentive for higher fertility. Large and
growing population results in greater risk of 'excessive' use.
BUT
Population density needed for property rights (Kenyan Highland)
KEY ISSUE: better to introduce property rights or limit population
How can we explain relationship between high income and low fertility?
Microeconomic theories (Becker 1981)
Children viewed as normal good
Price effect: in higher income societies, opportunity cost of parents' time is higher than in lowincome countries
Substitution effect: Parents substitute against quantity for quality
In modern economies, substitution and price effects outweigh the income effect, so high income
societies depict lower fertility.