This article, making standard assumptions, tests the effect that cross price elasticity of demand has on consumer (directly) and producer (indirectly) behaviour. Two classes of utility functions are employed: one is U = X⊃nY⊃m, which is asymptotically convex and, hence, conventional; another...

Conventional consumer equivalence scales measure the cost of children (and other household living arrangements) but not their benefits. Since many people choose to have children, these costs must be outweighed by other benefits. This paper considers these issues of demographic choice and...