Reproductive externalities and fertility behaviour

This article studies reproductive externalities within rural communities in poor countries. It is shown that such externalities create a link between household poverty, household size, and the local natural-resource base, each of which is viewed as being endogenous. The models presented here o!er an explanation for the fact that in recent decades large groups of people in various parts of the world have been unable to lift themselves out of acute poverty even while their national economies have, on average, enjoyed economic growth. Implications for policy and institutional changes are drawn. ( 2000 Elsevier Science B.V. All rights reserved. JEL classixcation: D1; D62; H31; J1; Q2