This paper examines a two-country dynamic general equilibrium model with endogenous fertility. We show that the introduction of child-rearing behavior brings about new properties in long-run dynamics. After an analysis of the existence, uniqueness, and local stability of the long-run equilibrium, we examine the international trade pattern and comparative static's in order to identify the differences with the standard dynamic international trade model.
- Dynamic two-country international trade model
- Endogenous fertility
- Long-run trade patterns
ASJC Scopus subject areas
- Economics and Econometrics