This paper develops an analytical model of the effect of family planningexpenditures on per capita income. The perspective is that of constrained optimization: a predetermined level of overall development resources is to be allocated to family planning programs and alternative uses in the form of expansion of the generalized capital stock (plant and machinery, education and training, and social infrastructure). The principal functions of the model are power forms, so that an explicit solution may be obtained for the optimal ratio of family planning expenditures to overall development resources. Important insights into the nature of this policy question are derived from consideration of the formula. In addition, tentative numerical estimates of the optimal ratio are presented for several developing economies. These estimates suggest that quite a substantial proportion of overall development resources should be allocated to family planning programs in most developing nations. The paper is concluded with a brief evaluation of the advantages and disadvantages of the optimization approach to population policy issues.
Population Research and Policy Review – Springer Journals
Published: Oct 4, 2004
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