A new approach to household fertility behavior

A 1st step is taken in this discussion towards the explicit theoretical recognition that fertility decisions are made by pairs of individuals who conceivably have different preferences or are in different circumstances. The focus is on disagreements between spouses over desired family size. The discussion begins by identifying the costs and benefits of child services to each spouse, which involves consideration of the type of interdependency of the utility functions as well as the nature of the externality problem in the production of child service. Specific examples are included of situations in which disagreement is likely to occur. Using the National Fertility Survey of 1965, it is possible to test whether disagreements are more likely to occur in these identified cases. 2 types of fertility conflict are predicted: the wife desires fewer children than the husband and the reverse. The National Fertility Survey (NFS) data set contains 5617 interview records. A sample of 1559 women who were married once, husband present, nonmenopausal, aged 25-39 with valid answers to all questions were selected. Husband's schooling in excess of wife's increased the probability that conflict of the husband demanding fewer children type will arise and the probability was increased at higher levels of income. The demand for quality rose with income and placed additional pressure on a husband with more education to assist (via lost leisure time) in the creation of quality. The effects were highly nonlinear. Higher levels of status of the wife's (potential) job had the predicted effect of making wife demands fewer children conflict more likely, but only through intermediate levels of status. Another variable which had a significant influence on the probability of conflict was the husband's age, with higher husband's age leading to husband demanding fewer children than wife conflict.     

Patterns of age and coverage errors in Tropical African surveys

The concept of calculating averages of African age distributions is developed in an attempt to distinguish the effect of age and coverage errors in demographic surveys in Tropical Africa from real fluctuations in the age structure. The concept is also used to discern different patterns of age errors and omissions and to indicate the extent of these errors in African age data. The method described is applied to data from 50 surveys undertaken in Tropical Africa between 1950 and 1973.     

Book Reviews

Rashid Amjad (ed.), The Development of Labour Intensive Industry in ASEAN Countries, Geneva: Asian Employment Programme, International Labour Office, 1981, pp. v + 337. US$10.00.

G. J. Viksnins, Financial Deepening in ASEAN Countries, Pacific Forum. University of Hawaii Press, 1980, pp. ix + 76.

C. Sosya, L-S. Chia, W. L. Collier (eds). Man, Land and Sea, Bangkok: Agricultural Development Council, 1982, pp. ix + 320.

Joachim K. Metzner, Agriculture and Population Pressure in Sikka, Isle of Flores, (A contribution to the study of the stability of agricultural systems in the wet and dry tropics). Development Studies Centre Monograph No. 28. Canberra: Australian National University Press, 1982, pp. xxxii + 355. $A15.00.

Dwight Y. King, Interest Groups and Political Linkages in Indonesia 1800–1965. DeKalb: Northern Illinois University, Center for Southeast Asian Studies Special Report No. 20, pp. vii + 192, index.

Improving Access to Indonesian Collections in the Netherlands, Leiden: Intercontinenta No. 2, 1981, pp. 78. Dlf. l4.75.     

Money creation and economic activity

Summary In the Netherlands not much attention is paid to money supply figures as an indicator of actual monetary conditions. This can be partly explained by the publication lag and the continuous revisions of seasonally adjusted data. However, the information that can be derived from money supply figures is limited because of temporary disturbances originating from the foreign exchange market. In this paper a correction method for these temporary disturbances is proposed. Money supply figures show a much closer link to real economic activity when corrected in this way.A different version of this essay with less emphasis on Holland but more information about other West-European countries has been published as chapter II Watching the money supply in: Eduard J. Bomhoff,Monetary Uncertainty, Amsterdam and New York, 1983. We gratefully acknowledge the able research assistance of Isolde B. Woittiez and Geert Rouwenhorst; Kempen and Co. kindly provided the two figures.     

The economics of dying: A misapplication of tools

Conclusions Unlike McKenzie and Tullock, we do not know how personsshould treat their bodily organs or what is an ideal exit. That depends upon their utility goals, which are defined in output terms specific to the decision maker. We contend that the body is an input into the utility production process, and therefore, as with any input, it must be maintained and repaired at a level consistent with the output goals for maximization of utility. Thus, from this framework, it is quite consistent for a person to die with healthy organs without any thought of belief in reincarnation or the desire to bequeath one's bodily organs to others, or religious values. Self interest is all that must prevail.Also, the fact that there are interrelationships between the organs in the system, and at points these relationships take on fixed factor characteristics such that reduced levels of operation in one organ can create disorientation or coma or damage to other organs, means that the body cannot die as M-T suggest. Zero capacity for all organs at death is a technical impossibility as well as being inconsistent with the output goals of utility maximizers.     

Introduction: Antitrust and Regulatory Update

Review of Industrial Organization -     

Pricing mortgage-backed securities in a multifactor interest rate environment: a multivariate density estimation approach

Multivariate density estimation (MDE) suggests that mortgage-backedsecurity (MBS) prices can be well described as a function ofthe level and slope of the term structure. We analyze how thisfunction varies across MBSs with different coupons. An importantfinding is that the interest rate level proxies for the moneynessof the option, the expected level of prepayments, and the averagelife of the cash flows, while the term structure slope controlsfor the average rate at which these cash flows should be discounted.