Intrafamily Interaction and Desired Additional Fertility in Pakistan: A Simultaneous-Equation Model with Dichotomous Dependent Variables

In this paper we present a methodology for incorporating intrafamily interaction in the desire for additional children. The latter is formalized as a dichotomous dependent variable. Our methodology involves a generalization of the partial-adjustment hypothesis and an application of the two-stage estimators proposed by Ma11ar[31; 32] and Heckman [20; 21]. We present empirical estimates based on 1968 data from Pakistan.