The measurement of child costs: a Rothbarth-type method consistent with scale economies

Olivier Bargain and Olivier Donni

No 201001, Working Papers from School of Economics, University College Dublin

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 identi?cation of the children's share requires the observation of at least one adult-speci?c 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: Consumer demand; Collective model; Rothbarth Method; Cost of children; Scale economies; Equivalence scales; Indifference scales; Home economics--Accounting; Child rearing--Economic aspects--Ireland; Consumption (Economics) (search for similar items in EconPapers)
Date: 2010-01
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Citations: View citations in EconPapers (5)

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http://hdl.handle.net/10197/2632 First version, 2010 (application/pdf)

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Working Paper: The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies (2009)
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