Economic and demographic outcomes are determined jointly in a choice-theore
tic model of fertility, mortality and capital accumulation. There is an end
ogenous population of reproductive agents who belong to dynastic families o
f overlapping generations connected through altruism. In addition to choosi
ng savings and births, parents may reduce (infant) deaths by incurring expe
nditures on health-care which is also provided by the government. A general
ised production technology accounts for long-run endogenous growth with sho
rt-run transitional dynamics. The analysis yields testable time series and
cross-section implications which accord with the empirical evidence on the
relationship between demography and development.