We study the Becker and Lewis (1973) quantity-quality model of children adding an explicit child care time constraint for parents. They can purchase day care or take care of the children themselves. Our results are: (i) If there is a combination of purchased and own care, the effect of income on...

The empirical evidence suggests that parents use inter vivos gifts (i.e., transfers of tangible and financial property) to compensate less well off children whereas post mortem bequests are divided equally among siblings. We study a theoretical model assuming, first, that the amounts given is...

In a recent article Stefan Fölster and Magnus Henrekson [2001] argue that “…the more the econometric problems that are addressed, the more robust the relationship between government size and economic growth appears”. But in failing to control for simultaneity in a valid manner the...