Family Planning and Development: Aggregate Effects of Contraceptive Use

43 Pages Posted: 29 Jan 2020

See all articles by Tiago Cavalcanti

Tiago Cavalcanti

University of Cambridge

Georgi Kocharkov

Goethe University Frankfurt - House of Finance

Cezar Santos

Getulio Vargas Foundation (FGV) - FGV/EPGE Escola Brasileira de Economia e Finanças

Date Written: January 2020

Abstract

What is the role of family planning interventions on fertility, savings, human capital investment, and development? To examine this, endogenous unwanted fertility is embedded in an otherwise standard quantity-quality overlapping generations model of fertility and growth. The model features costly fertility control and families can (partially) insure against a fertility risk by using costly modern contraceptives. In the event of unexpected pregnancies, households can also opt to abort some pregnancies, at a cost. Given the number of children born, parents decide how much education to provide and how much to save out of their income. We fit the model to Kenyan data, implement several family planning policies and decompose their aggregate effects.

Our results suggest that with a small government budget (say, up to 0.5 percent of GDP), family planning interventions might be more cost-effective in improving longrun living standards than policies that subsidise basic education.

Keywords: Abortion, Contraception, education, Income per capita

JEL Classification: E24, I15, J13, O11

Suggested Citation

Cavalcanti, Tiago and Kocharkov, Georgi and Santos, Cezar, Family Planning and Development: Aggregate Effects of Contraceptive Use (January 2020). CEPR Discussion Paper No. DP14329, Available at SSRN: https://ssrn.com/abstract=3526054

Tiago Cavalcanti (Contact Author)

University of Cambridge ( email )

Trinity Ln
Cambridge, CB2 1TN
United Kingdom

Georgi Kocharkov

Goethe University Frankfurt - House of Finance ( email )

Grüneburgplatz 1
Frankfurt am Main, DE 60323
Germany

Cezar Santos

Getulio Vargas Foundation (FGV) - FGV/EPGE Escola Brasileira de Economia e Finanças ( email )

Praia de Botafogo 190/1125, CEP
Rio de Janeiro RJ 22253-900
Brazil

HOME PAGE: http://sites.google.com/site/czrsantos

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