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Children and Demand: Direct and Non-Direct Effects

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  • Martin Browning

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  • Valérie Lechene

    ()

Abstract

This paper examines the effects of children on demands. We employ a French family expenditure survey that has a number of unusual features to explore the source of the correlation between children and demands. The first sample we use is of older households which has information on completed fertility. The second sample is of younger households for whom we have family background variables. We find that children are not exogenous for some goods. These findings cast doubt on the usual practice of identifying “direct” children effects with the coefficients on the children variables in demand equations. Copyright Kluwer Academic Publishers 2003

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Bibliographic Info

Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 1 (2003)
Issue (Month): 1 (January)
Pages: 9-31

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Handle: RePEc:kap:reveho:v:1:y:2003:i:1:p:9-31

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Web page: http://www.springerlink.com/link.asp?id=109451

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Keywords: children; demand; fixed effects; state dependence; intra-household effects;

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References

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  1. Browning, M. & Chiappori, P.A., 1994. "Efficient Intra-Household allocations: A General Characterization and Empirical Tests," DELTA Working Papers 94-16, DELTA (Ecole normale supérieure).
  2. Deaton, Angus S & Muellbauer, John, 1986. "On Measuring Child Costs: With Applications to Poor Countries," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 720-44, August.
  3. Thomas Mroz, . "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," University of Chicago - Population Research Center 84-8, Chicago - Population Research Center.
  4. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
  5. Lewbel, Arthur, 1985. "A Unified Approach to Incorporating Demographic or Other Effects into Demand Systems," Review of Economic Studies, Wiley Blackwell, vol. 52(1), pages 1-18, January.
  6. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
  7. Dickens, Richard & Fry, Vanessa & Pashardes, Panos, 1993. "Non-linearities and Equivalence Scales," Economic Journal, Royal Economic Society, vol. 103(417), pages 359-68, March.
  8. Gronau, Reuben, 1988. "Consumption Technology and the Intrafamily Distribution of Resources:," Journal of Political Economy, University of Chicago Press, vol. 96(6), pages 1183-1205, December.
  9. Cain, Glen G & Dooley, Martin D, 1976. "Estimation of a Model of Labor Supply, Fertility, and Wages of Married Women," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S179-99, August.
  10. Hotz, V Joseph & Miller, Robert A, 1988. "An Empirical Analysis of Life Cycle Fertility and Female Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 91-118, January.
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Citations

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Cited by:
  1. Lyn Craig, 2007. "How Employed Mothers in Australia Find Time for Both Market Work and Childcare," Journal of Family and Economic Issues, Springer, vol. 28(1), pages 69-87, March.
  2. Lyn Craig, 2006. "Where Do They Find the Time?: An Analysis of How Parents Shift and Squeeze Their Time around Work and Child Care," Economics Working Paper Archive wp_439, Levy Economics Institute.
  3. Laura Blow & Valérie Lechene & Peter Levell, 2014. "Using the CE to Model Household Demand," NBER Chapters, in: Improving the Measurement of Consumer Expenditures National Bureau of Economic Research, Inc.
  4. Christophe Kolodziejczyk, 2006. "A Note on the Correlated Random Coefficient Model," CAM Working Papers 2006-10, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  5. Christophe Kolodziejczyk, 2006. "Retirement and Fixed Costs to Work: An Empirical Analysis," CAM Working Papers 2006-09, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  6. Martina Kirchberger, 2014. "Preferences over Leisure and Consumption of Siblings and Intra-Household Allocation," Economics Series Working Papers 713, University of Oxford, Department of Economics.

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