The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies

Olivier Bargain and Olivier Donni

No 4654, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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 method differs from this traditional approach in that it allows measuring economies of scale in the household and indifference scales in Lewbel (2003)'s sense. We illustrate the method with an application on the French Household Budget Survey.

Keywords: Rothbarth method; consumer demand; cost of children; scale economies; indifference scales; equivalence scales; collective model (search for similar items in EconPapers)
JEL-codes: C30 D11 D12 I31 J12 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2009-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Published - published as 'Expenditure on Children: A Rothbarth-Type Method Consistent with Scale Economies and Parents' Bargaining' in: European Economic Review, 2012, 56 (4), 792-813

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Working Paper: The measurement of child costs: a Rothbarth-type method consistent with scale economies (2010)
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