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Stage-specific family structure models: implicit parameter restrictions and Bayesian model comparison with an application to prosocial behavior

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  • Mark Ottoni-Wilhelm
  • Robert Bandy

Abstract

The two most frequently used specifications in stage-specific family structure analyses of young adult outcomes-state × stage and event × stage-impose restrictions on the parameters of the underlying model of child development. The restrictions imposed by the state specification have substantive a priori disadvantages, implying that use of the state specification requires justification by a specification test. Because the state and event specifications are non-nested, a classical approach to specification testing runs into practical problems. We demonstrate the advantages of a Bayesian approach to the specification testing problem using two applications to young adult prosocial behavior-charitable giving and volunteering. Substantive results are that family structure transitions during adolescence are negatively associated with subsequent giving, and transitions during middle childhood are positively associated with subsequent volunteering. There are other substantive results that would have been missed had we not realized that the state and event specifications impose restrictions on the underlying model and had we not made specification testing a prerequisite for substantive analysis. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Mark Ottoni-Wilhelm & Robert Bandy, 2013. "Stage-specific family structure models: implicit parameter restrictions and Bayesian model comparison with an application to prosocial behavior," Review of Economics of the Household, Springer, vol. 11(3), pages 313-340, September.
    • Handle: RePEc:kap:reveho:v:11:y:2013:i:3:p:313-340
    DOI: 10.1007/s11150-012-9148-7
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    References listed on IDEAS

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    Cited by:

    1. Mark Ottoni-Wilhelm & Ye Zhang & David B. Estell & Neil H. Perdue, 2017. "Raising charitable children: the effects of verbal socialization and role-modeling on children’s giving," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 189-224, January.

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    More about this item

    Keywords

    Divorce; Marriage; Adolescence; Charitable giving; Donations; Volunteering; J12 (family structure); D64 (altruism); H40 (public goods);
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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