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Journal of Political Economy Vol. 94 No. 4 1986

On Measuring Child Costs: With Applications to Poor Countries

Angus Deaton; John Muellbauer

Abstract

The theoretical basis for measuring child costs is discussed, and detailed consideration is given to two straightforward procedures for calculation, Engel's food share method and Rothbarth's adult good method. Each of these methods embodies different definitions of child costs so that the same empirical evidence can generate quite different estimates depending on the method used. It is shown that true costs are generally overstated by Engel's method and understated by Rothbarth's procedure, although the latter, unlike the former, can provide a sensible starting point for cost measurement. Our estimates from Sri Lankan and Indonesian data suggest that children cost their parents about 30-40 percent of what they spend on themselves.

DOI
10.1086/261405
Volume
94
Issue
4
Pages
720-744
Language
en
Sources
openalex crossref

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