Optimal targets for Indian familiy planning program

Abstract

Benefits and costs associated with family planning programs of underdeveloped countries in general, and of India in particular, have been a subject of intensive investigations. These studies have been primarily used as a means for the justification of family planning programs. Here applied benefit-cost analysis to derive the economically justifiable targets for Indian family planning programmers. The targets are defined in terms of desired declines in general fertility rates (GFR). A demographic and economic model similar to Coale- Hoover is constructed to evaluate the economic consequences of different GFR used to estimate the costs of achieving various GFR paths. Benefit-Cost analysis is used to compare these paths and derive optimal targets. The study shows that the benefit-cost analysis results are very sensitive to the type of economic benefits considered. Interest rates and horizon periods also effect the optimal targets.