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Children and Demand: Direct and Non-Direct Effects

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  • Martin Browning
  • 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

Suggested Citation

  • Martin Browning & Valérie Lechene, 2003. "Children and Demand: Direct and Non-Direct Effects," Review of Economics of the Household, Springer, vol. 1(1), pages 9-31, January.
    • Handle: RePEc:kap:reveho:v:1:y:2003:i:1:p:9-31
    DOI: 10.1023/A:1021895313920
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    Cited by:

    1. 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.
    2. Kirchberger, Martina, 2020. "Intra-household allocation of time and money across siblings," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 361-377.
    3. 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.
    4. Laura Blow & Valérie Lechene & Peter Levell, 2014. "Using the CE to Model Household Demand," NBER Chapters, in: Improving the Measurement of Consumer Expenditures, pages 141-178, National Bureau of Economic Research, Inc.
    5. 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.
    6. 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.
    7. 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.

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    More about this item

    Keywords

    children; demand; fixed effects; state dependence; intra-household effects;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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