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Summary
This study surveys economic models estimating the marginal cost of children using Australian household data. It argues child costs are relevant for social policy and compares models using expenditure patterns.
Area of Science:
- Economics
- Family Economics
- Social Policy Analysis
Background:
- Estimating the economic costs of raising children is crucial for social policy development.
- Cross-sectional household expenditure data provides a basis for these economic models.
- The relevance of child costs for social policy has been debated.
Purpose of the Study:
- To survey and synthesize economic models for estimating marginal child costs.
- To evaluate the argument against considering child costs in social policy.
- To compare different economic models using Australian household expenditure data.
Main Methods:
- Review and synthesis of existing economic models.
- Analysis of the social policy relevance of child costs.
- Estimation of an Engel curve system using 1988-89 Australian Household Expenditure Survey data.
Main Results:
- Identified and synthesized various economic models for child cost estimation.
- Contested and rejected the notion that child costs are irrelevant to social policy.
- Compared model performance using empirical Australian household expenditure data.
Conclusions:
- Economic models provide valuable estimates of marginal child costs.
- Child costs are a significant consideration for social policy.
- Further research and improved data collection strategies are needed.