This paper investigates how access to credit might impinge on risk behavior. It demonstrates that credit, by facilitating the pooling of risk across time, renders a risk-averse individual more capable of absorbing risk. Some implications of this result--mainly for developing economies--are then...

This paper considers, in an overlapping generations model, the fertility choice of parents confronted with the possibility of child mortality. The motive for having children is assumed to be old age security and, therefore, not altruistic. It is shown first, in a partial equilibrium setting,...