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. We consider a household that comprises an adult and a child. The household behavior is described by the maximization of … the adult's utility function, which depends on the child's welfare, subject to a budget constraint. The relative effects … of a price subsidy and of a cash benefit on child welfare are then derived. In particular, it is shown that 'favorable …
Persistent link: https://www.econbiz.de/10003581183
We apply an extension of the Rothbarth approach to estimate the share of household resources accruing to children (i.e., the cost of children) in Ireland. The method also allows us to identify the economies of scale in the household and indifference scales in Lewbel (2003)'s sense. A practical...
Persistent link: https://www.econbiz.de/10009725464
We propose a new methodology to estimate the share of household income accruing to children (i.e., the cost of children). Following the principle of the Rothbarth approach, the identification of the children's share requires the observation of at least one adult-specific good. However, our...
Persistent link: https://www.econbiz.de/10009723331