Better health and educational outcomes are obtained since parents are allowed to invest more resources per child. Increasing domestic demand is the fourth mechanism that results from decreasing dependency ratio and increasing GDP per capita. Fertility that is small leads to low youth dependency and high working-age ratio to the total population. Apart from global issues, demographics has an important role in the day-to-day decision making of the local and national government
The demographic baseline models that can be used include the demographic stochasticity which describes the randomness that would result from the inherently discrete nature of the gender and race demographic features. The stochastic model can handle the uncertainty in the in the inputs built into it. For producing the kind of results the politician is asking for the stochastic model, is absolutely necessary, since it will present the result as a probability or when the variance is significant. A methodological consequence of the adaptation of such techniques is that forecast uncertainty can be handled probabilistically. An enormous dataset of the gender and race demographic features will tend towards this model, only because the model allows for a greater variety of variables.
The second demographic baseline model that can be used is the deterministic model since it does a better job of identifying conditions that are sufficient and necessary. In gender and race demographic features, the sufficient and necessary variables would be dropped from the model since it would predict the outcome perfectly. This model does not include randomness elements; every time the model will be run with the same initial condition the same results will be obtained. Another demographic model that can be used is macroeconomic.