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Economic Demography Field Exam: Marriage, Health, Education, and Fertility Trends, Exams of Economics

A field exam from the university of california, berkeley's department of economics, focusing on economic demography. Topics include the rising age at first marriage, improvements in health and longevity, the relationship between public education and pensions, and fertility trends. Students are expected to answer all questions, cite literature, and allocate approximately 45 minutes to each question.

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Department of Economics
University of California, Berkeley
January 10, 2007
Field Exam for Economic Demography
Please answer all parts of all questions. The four numbered questions count equally in the
grade. Cite the literature where appropriate. You have three hours. You should allocate
roughly 45 minutes to each question. You may use a calculator for Question 4.
1. The age at first marriage for women in the US and most other industrial nations has
been rising in recent decades, and fewer women are marrying at all. Discuss possible
causes of these trends, drawing on the economics of marriage. Also discuss the
possible role of improved contraception and explain how this might be interpreted in
terms of the economic theory of marriage.
2. General health and longevity have improved markedly in the industrial nations during
the past century or two. To some degree this improvement reflects advances in
biomedical technology and public hygiene. However, rising income may also have
been directly relevant, in addition to any indirect effects on technology and public
hygiene. Draw on the theoretical and empirical literature to explain how and why
economic improvement might have a direct effect. Discuss how any such effect might
vary across the life cycle. Discuss why it is difficult to establish causality.
3. Write briefly on the following points (about ten minutes on each of the four parts):
a. According to a theory proposed by Becker and Murphy, the introduction of
public education might be linked to the introduction of public pensions.
Briefly outline the theory and explain how the linked introduction of these
programs might achieve efficiency gains.
b. From a societal point of view, would the optimal saving rate be higher or
lower in an aging population than in a young one? (refer to Cutler et al, 1990)
Explain your answer. Would it matter whether population was aging due to
low fertility or to longer life?
c. If both numbers of children and quality of children are normal goods, then
why has fertility tended to fall as income has risen, either over time or in the
cross section? What is the basic insight that the quantity-quality theory offers
on this point?
d. The use of modern contraceptives leads to lower fertility, and family planning
programs facilitate access to modern contraceptives. Why, then, is it difficult
to assess the role of family planning programs as a causal factor for fertility
decline in the Third World? Refer to the literature.
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Department of Economics University of California, Berkeley January 10, 2007

Field Exam for Economic Demography

Please answer all parts of all questions. The four numbered questions count equally in the grade. Cite the literature where appropriate. You have three hours. You should allocate roughly 45 minutes to each question. You may use a calculator for Question 4.

  1. The age at first marriage for women in the US and most other industrial nations has been rising in recent decades, and fewer women are marrying at all. Discuss possible causes of these trends, drawing on the economics of marriage. Also discuss the possible role of improved contraception and explain how this might be interpreted in terms of the economic theory of marriage.
  2. General health and longevity have improved markedly in the industrial nations during the past century or two. To some degree this improvement reflects advances in biomedical technology and public hygiene. However, rising income may also have been directly relevant, in addition to any indirect effects on technology and public hygiene. Draw on the theoretical and empirical literature to explain how and why economic improvement might have a direct effect. Discuss how any such effect might vary across the life cycle. Discuss why it is difficult to establish causality.
  3. Write briefly on the following points (about ten minutes on each of the four parts):

a. According to a theory proposed by Becker and Murphy, the introduction of public education might be linked to the introduction of public pensions. Briefly outline the theory and explain how the linked introduction of these programs might achieve efficiency gains. b. From a societal point of view, would the optimal saving rate be higher or lower in an aging population than in a young one? (refer to Cutler et al, 1990) Explain your answer. Would it matter whether population was aging due to low fertility or to longer life? c. If both numbers of children and quality of children are normal goods, then why has fertility tended to fall as income has risen, either over time or in the cross section? What is the basic insight that the quantity-quality theory offers on this point? d. The use of modern contraceptives leads to lower fertility, and family planning programs facilitate access to modern contraceptives. Why, then, is it difficult to assess the role of family planning programs as a causal factor for fertility decline in the Third World? Refer to the literature.

  1. While performing field work in a far-off country, a colleague has identified a small ethnic enclave that appears to be closed to migration and marriage. He believes the vital rates of this population to have been relatively constant for many years, with an intrinsic rate of growth until recently of about 1% per year. While lunching with your colleague, he is suddenly trampled to death by a rhinoceros that has escaped from the local zoo. Tragically, parts of his notebook have been obliterated by salad dressing. Give the BEST estimate or formula you can for the following quantities based on the fragmentary evidence available. IMPORTANTLY, if you need to make simplifying assumptions (and you will), give a short explanation (a couple of sentences or a formula will suffice) to defend your choices. As in real life, your answers will be judged not only on the accuracy of your calculation but also on the reasonableness of your approach and assumptions.

a. The notes appear to contain these 10 Lx 's for x = 0, 10, 20, ..., 80: 9.44, 8.91, 8.54, 8.02, 7.44, 7.07, 6.1, 2.95, 1.5. Calculate the expectation of life at birth.

b. The notes also reveal that in the last year, while mortality rates have remained unchanged, fertility rates may have dropped so that, if the new rates were held constant, the long term consequence would be zero growth. Estimate the size of the ultimate stationary population in relation to the current population.

c. Estimate the change in the proportion of the population aged 60-80 with the change in the growth rate.

d. The notes also hint that the population growth rate may have dropped from 2% to 1% about 60 years ago. Make a new estimate of your answer to part (c).