The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies and Parents’ Bargaining

Olivier Bargain and Olivier Donni

No 2010-30, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)

Abstract: We propose a new methodology to estimate the share of household income accruing to children, i.e., the cost of children. The household behavior is represented according to the collective approach. That is, each household member is characterized by speci.c preferences. Following the principle of the Rothbarth approach, the identi.cation of the children.s share requires the observation of adult-speci.c goods. Our method di¤ers from this traditional approach in that it is compatible with economies of scale as well as with parents. bargaining. In addition, it allows de.ning a new concept of child costs that takes into account economies of scale. We illustrate the method with an application on the French Household Budget Survey.

Keywords: Consumer Demand; Collective Model; Rothbarth Method; Cost of Children; Scale Economies; Equivalence Scales; Indifference Scales (search for similar items in EconPapers)
JEL-codes: D11 D12 I31 J12 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2010-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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