Question

Explain in detail about the Microeconomic Household Theory of Fertility. Demonstrate how this theory is relevant in developing countries.

Answer 1

got of The thely builds on the standard thefy consumer behaviour to explain family size decision for childeren equation. Demand cd = f(Y, Pc, Px, t) U=1,2,3 --- where cd= Demand for surnung y = The level of household income Pc = The met price of childean Px = price of all other goods tx= Tuctes for goods nature to childern Goods command by y azt Fy The model explains increase the relations hip return family size and level of income The theory is relevant for developing counnies a qb db bly poor households because No. of demand childein O childein are considered an (Cd) ecnomic investment reather then consumption good. & The expected return on investement is given by child labor and finally

financial support for parents in old age childean are upto point where marginal onomic benefit is equal to marginal private cost