Describe in words what the figure reveals about the relationship be- tween the level of income per capita and fertility in 2013 across countries and discuss to which extend the empirical relationship observed in 2013 iloka de Silva and Silvana Tenreyro, "Population Control Policion

ENGR.ECONOMIC ANALYSIS
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Answer question 1
189
Intermediate Macroeconomics, Chapter 7
is or is not consistent with the predictions of the Solow growth model
with population growth, which takes fertility as exogenously given. In
relating the graph to the Solow model with population growth be ex-
plicit about the assumption you are making for your argument.
2. Now view the graph through the lens of the proverty trap model with
endogenous fertility. Use the figure to argue that it supports (or does
not support) the claim that fertility fell in the developing world between
1960 and 2013 because of income gains over this period.
3. Finally, use the graph to support (or contradict) the hypothesis that
the wordwide spreading of population-control programs, such as those
associated with the Population Council founded by John D. Rockefeller
III, explains the observed decline in fertility between 1960 and 2013.
Transcribed Image Text:189 Intermediate Macroeconomics, Chapter 7 is or is not consistent with the predictions of the Solow growth model with population growth, which takes fertility as exogenously given. In relating the graph to the Solow model with population growth be ex- plicit about the assumption you are making for your argument. 2. Now view the graph through the lens of the proverty trap model with endogenous fertility. Use the figure to argue that it supports (or does not support) the claim that fertility fell in the developing world between 1960 and 2013 because of income gains over this period. 3. Finally, use the graph to support (or contradict) the hypothesis that the wordwide spreading of population-control programs, such as those associated with the Population Council founded by John D. Rockefeller III, explains the observed decline in fertility between 1960 and 2013.
output per capita, +1721 – 1, in SG, CG,
Yt/Lt
bits (
Exercise 7.2 (Endogenous Fertility). The figure shown below, which is taken
il col
per
from Silva and Tenreyro (2017),² plots the total fertility rate against real
capita income for 88 countries in 1960 (circles) and in 2013 (triangles).
Figure 3
Fertility-Income Relation in 1960 and 2013
O 1960
A 2013
-- Fitted line 1960
Fitted line 2013
6.
14
55
403 2,981
22,626
162 755
GDP per capita (US$)
Source: Authors using data from the World Development Indicators database.
Note: For a sample of 88 countries, the figure shows the scatterplots and fitted line (that is, the lowess
smoothed relationship or locally weighted smoothing function) between the total fertility rate and log of
per capita GDP (in constant 2005 US$) in 1960 and 2013. The x-axis is log scale.
1. Describe in words what the figure reveals about the relationship be-
tween the level of income per capita and fertility in 2013 across countries
bodo and discuss to which extend the empirical relationship observed in 2013
2Tiloka de Silva and Silvana Tenreyro, "Population Control Policies and Fertility Con-
vergence," Journal of Economic Perspectives, Volume 31, Number 4, Fall 2017, pages
205-228.
Total fenility rate
Transcribed Image Text:output per capita, +1721 – 1, in SG, CG, Yt/Lt bits ( Exercise 7.2 (Endogenous Fertility). The figure shown below, which is taken il col per from Silva and Tenreyro (2017),² plots the total fertility rate against real capita income for 88 countries in 1960 (circles) and in 2013 (triangles). Figure 3 Fertility-Income Relation in 1960 and 2013 O 1960 A 2013 -- Fitted line 1960 Fitted line 2013 6. 14 55 403 2,981 22,626 162 755 GDP per capita (US$) Source: Authors using data from the World Development Indicators database. Note: For a sample of 88 countries, the figure shows the scatterplots and fitted line (that is, the lowess smoothed relationship or locally weighted smoothing function) between the total fertility rate and log of per capita GDP (in constant 2005 US$) in 1960 and 2013. The x-axis is log scale. 1. Describe in words what the figure reveals about the relationship be- tween the level of income per capita and fertility in 2013 across countries bodo and discuss to which extend the empirical relationship observed in 2013 2Tiloka de Silva and Silvana Tenreyro, "Population Control Policies and Fertility Con- vergence," Journal of Economic Perspectives, Volume 31, Number 4, Fall 2017, pages 205-228. Total fenility rate
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