34 Pages Posted: 15 Feb 2001
Date Written: February 1976
This paper brings together and integrates social interactions and the special relation between quantity and quality. We are able to show that the observed quality income elasticity would be relatively high and the quantity elasticity relatively low and sometimes negative, even if the true "unobservedâ€? income elasticities for quantity and quality were equal and of average value. Moreover, the observed quality elasticity would fall, and the observed quantity elasticity would rise, as parental income rose.
Suggested Citation: Suggested Citation
Becker, Gary S. and Tomes, Nigel, Child Endowments, and the Quantity and Quality of Children (February 1976). NBER Working Paper No. w0123. Available at SSRN: https://ssrn.com/abstract=260313