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Child allowances and allocative decisions in Romanian households

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  • David Sahn
  • Ari Gerstle

Abstract

In this paper it is tested whether increasing child allowances will affect the intra-household allocation of consumption, measured by child and adult goods, holding total household resources constant. The analysis is based on household survey data collected in Romania, where cash payments are made to families according to the number and age of children. Selectivity is controled for since there is the potential for self-selection bias in terms of the level of child allowances received. The findings suggest that holding total household resources constant, child allowances increase demand for child goods and calories and reduce demand for adult goods.

Suggested Citation

  • David Sahn & Ari Gerstle, 2004. "Child allowances and allocative decisions in Romanian households," Applied Economics, Taylor & Francis Journals, vol. 36(14), pages 1513-1521.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:14:p:1513-1521
    DOI: 10.1080/0003684042000217986
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    Cited by:

    1. Benoit Dostie & David Sahn, 2006. "Labor Market Dynamics in Romania During a Period of Economic Liberalization," Cahiers de recherche 06-17, HEC Montréal, Institut d'économie appliquée, revised Jun 2008.
    2. Mangiavacchi, Lucia & Piccoli, Luca, 2011. "Improving the measurement of child welfare in the context of intra-household inequality," Children and Youth Services Review, Elsevier, vol. 33(2), pages 226-232, February.
    3. David E. Sahn & Stephen D. Younger, 2009. "Measuring intra‐household health inequality: explorations using the body mass index," Health Economics, John Wiley & Sons, Ltd., vol. 18(S1), pages 13-36, April.
    4. Sarah Reynolds, 2015. "Behavioral games and intrahousehold allocation: teenage mothers and their mothers in Brazil," Review of Economics of the Household, Springer, vol. 13(4), pages 901-927, December.
    5. M.Ruiz-Arranz & B.Davis, S.Handa & M.Stampini & P.Winters, 2006. "Program Conditionality and Food Security: The Impact of PROGRESA and PROCAMPO Transfers in Rural Mexico," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 7(2), pages 249-278.
    6. Masako Oyama, 2006. "Measuring cost of children using equivalence scale on Japanese panel data," Applied Economics Letters, Taylor & Francis Journals, vol. 13(7), pages 409-415.
    7. Grogan, Louise, 2018. "The Labeling Effect of a Child Benefits System: Evidence from Russia 1994-2015," IZA Discussion Papers 11962, Institute of Labor Economics (IZA).
    8. Echeverría, Lucía, 2020. "Modelos colectivos de consumo y distribución intra-hogar. Teoría y aplicaciones," Nülan. Deposited Documents 3832, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

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