Economy and Fertility (Theory and Critiques)

This paper attempts, to examine the key economic theories on the subject of fertility since Adam Smith until modern times, and also tries to present a proper division of the theories. Based on the findings of this study, classification the theories into micro and macro is the best classification, although, micro theories have more theoretical strength. However, micro theories are not totality of integrated and there are vast differences between them. On the other hand, there are commonly important criticism to the economic theory including economic theories of fertility, ignoring role of institutions. Actually, various studies of the institutionalists and cognitive scientists, show that assuming perfect rationality, that is the cornerstone of the economic approach, is not true; therefore, in analyzing the behavior of people, factors such as culture, ideology, common, etc. that institutionalists bring them under the institution definition, should be noted. It should also be considered in the analysis of fertility. Various studies have shown that institutions have important role in fertility, while that in economic analyzes this issue is neglected.