This paper develops a theory of optimal fertility behavior under mortality shocks. In an OLG model, young adults determine their optimal fertility, labor supply and life-cycle consumption with both exogenous child and adult mortality risks. We show that a rise in adult mortality exerts an...

This paper is concerned with the impact of epidemics on economic behavior, and in particular on fertility and schooling. Special attention is paid to the fertility eect, which has been at the heart of a recent controversy around the AIDS crisis. An illustrative model is proposed where agents...