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Product variety and the demographic transition

Economics Letters, Vol. 107, N°1, pp. 74–76. Joint with Jacob Weisdorf.

Ricardo Andrés Guzmán and Jacob Weisdorf. Economics Letters, Vol. 107, N°1, pp. 74–76, 2010.

ABSTRACT

Why does the rate of population growth decline in the face of economic growth? We show that growing product variety may induce a permanent reduction in the demand for children and a continuous rise in income and consumption.