One explanation for the demographic transition in developing countries

This paper considers, in an overlapping generations model, the fertility choice of parents confronted with the possibility of child mortality. The motive for having children is assumed to be old age security and, therefore, not altruistic. It is shown first in a partial equilibrium setting that reductions in child mortality can induce a demographic transition. In a general equilibrium setting, it is shown that a marginal reduction in child mortality can raise or lower the standard of living of the steady-state equilibrium population, depending on the initial level of child mortality. Finally the paper draws some relevant policy implications.