Applied Microeconomics Essay Example

Applied Microeconomics

Applied Microeconomics

Table of Contents

31.0 Introduction

32.0 Abortion and the Law of Demand

32.1 Study Background

32.2 Analysis

42.3 Critical Review

43.0 Unplanned Pregnancies

43.1 Study Background

53.2 Study Analysis

53.3 Critical Analysis

64.0 Conclusion


1.0 Introduction

This report offers a review of two journal articles as developed by Medoff (1988) and Nuevo-Chiquero (2014). As such, the report offers a critical analysis on both studies evaluating their focus, actual data analysis as well as the subsequent study conclusions. Moreover, the report offers a critical review of the developed conclusions on the respective studies.

2.0 Abortion and the Law of Demand

2.1 Study Background

The article evaluates and analysis the concept of abortion. Traditionally, abortion was reviewed based on the social and cultural implications aspects such as the causes, motivating factors as well as social implications. However, minimal studies have focused on the social economic aspects of abortion. Therefore, the study developed by Medoff (1988, p.353) applied an economic model of fertility to establish the demand for abortion across the globe. As such, the study focused on establishing the relationship between fertility and the costs of child rearing and care. Moreover, the study focused on establishing the demand elasticity of abortion in the society.

2.2 Analysis

The study review evaluated the price and demand elasticity of abortion. On one hand, the study revealed that abortion resembles other normal goods in the market with a price elasticity of 0.81. Moreover, the study established that abortion has a demand elasticity of 0.79. This implied that abortion, as a market commodity, demand is influenced by a range of external factors. For instance, the study established that demand for labour is positively related to women labour participation. In this regard, it concluded that women actively involved in productive labour registered increased abortion rates as compared to non labour participating women as well as the unmarried ones (p.356). The price of abortion at a 0.05 significance level was established as negative. As such, this negative relationship confirms the conformance of abortion to the law of demand. Moreover, the study statistical analysis established a 0.01 relationship with regard to income, demonstrating its conformance to normal goods characteristics. However, an evaluation of other external factors such as religion, poverty and education role were found insignificant to the demand for abortion.

2.3 Critical Review

Based on the established findings, the study established that abortion is a normal good following the law of demand. Therefore, it argued on the need for increased perception of abortion as an economic factor rather than purely a social activity. However, the argument that religion and education levels insignificant influence on abortion could be incorrect. Therefore, in order to evidence the actual level of influence of these social economic factors on abortion rates and demand, further studies should be conducted to evaluate their actual statistical contribution.

3.0 Unplanned Pregnancies

3.1 Study Background

Increasing role of women in economic activities through their increased participation in the global market increases their overall relevance in the market. As such, in order to increase women labour management, it is imperative to establish factors influencing as well as stimulating their participation. Nuevo-Chiquero (2014, p.3) developed a study evaluating the effects of child bearing on women labour force productivity. In this case, the study especially focused on establishing the relationship between unplanned childbearing and women labour force productivity. Subsequently, the study focuses on evaluating if the unplanned pregnancies affected women workforce and if there existed a relationship between women working and those not in productive labour instances of unplanned pregnancies

3.2 Study Analysis

The study analysis reviewed data obtained through study interviews that evaluated unplanned pregnancy instances for the past five years prior to the interviews. With respect to the implications of unplanned pregnancies on women labour workforce productivity, the study established that the workforce creativity was not only affected during pregnancies but also when the children were below 6 years. However, the study registered a declining implication of unplanned instances on workforce productivity. For instance, a statistical analysis of such unplanned pregnancies implications established that the rates had dropped as compared to the 1975, 0.082 and the recent implications of 0.074 (p.5). However, the study analysis acknowledges a potential data bias due to uncontrolled behaviour by some women as well as abortion that could have influenced the acquired values in the study. However, the study mitigated these challenges through the application of the competing risk model that allowed for reduced miscarriages bias on the study sample.

3.3 Critical Analysis

Based on the study analysis as well as key objectives, it concluded that modern contraceptives have enabled women increase their control on birth thus considerably reducing cases of unplanned pregnancies. However, the study observes that the introduction of pills did not reduce overall fertility rates (p.10). With a review on the study findings of reduced influence of unplanned pregnancies on women productivity, this report concludes that organisations should develop structures to support pregnant women in order to enhance and increase their productivity to the optimum.

4.0 Conclusion

In summary, this report concludes that on one hand, abortion abides by the law of demand and is price elastic. As such, it argues that unlike its traditional perception of being a social challenge, it is also an economic phenomenon. On the other hand, it concludes that increased contraceptives use has reduced abortions as well as unplanned pregnancy cases.


Medoff, H. M., 1988, “An Economic Analysis of the Demand for Abortions”, Economic Enquiry, vol. XXVI, pp. 353-359

Nuevo-Chiquero, A., 2014, “The labour force effects of unplanned childbearing”, Labour Economics, vol. 12, no. 37, pp. 2-11