A Household Production Function Model of the Production of Child Health and Education - The Role of Housing-Related Inputs

This paper develops a household production function model for the production of health and education of the children in the household. The model assumes that a household derives utility from the children in the household being healthy and well-educated. The household produces health and education by applying a variety of inputs that include market goods like food, medicines, classes, and housing; and also non-market goods like the time of parents and other family members, and inculcating health- and education-enhancing habits in children. The model is in the tradition of Becker (1965, 1967), Ben-Porath (1967) and Grossman (1972). This model focuses on housing-related inputs. These inputs include the physical characteristics of the dwelling, neighborhood characteristics, and housing mobility (or locational stability). Housing expenditures play a role in the demand for inputs because they form a large share of the family's budget, and affect the residual income available to purchase other inputs. The paper explores the relevant empirical literature (in housing economics and policy, health economics, sociology, education, public health, and medicine) to highlight salient findings on the connections between housing-related inputs and children's health and education. Finally, the paper suggests strategies for estimating household production function models of children's health and education with a focus on housing-related inputs