Quality-Quantity Trade-off: Becker’s (1981) theory proposes a quality-quantity tradeoff in fertility choices. Parents pay for having kids (childcare, feeding the child etc.) and well as nurturing the kids (providing education). a. What does Becker’s theory imply about children born in big families? b. To test this model, we need to identify whether it is true that parents would invest more in kids’ quality (e.g. education) if they had fewer kids. Suppose we compare the education of children in large families and small families, and find that children in small families get more education. Does this imply that being born into a large family causes a child to get low education? What mechanisms can you think of that can lead to this association? c. Economists have used twins to test the presence of a quality-quantity trade-off. In fact, we find that there is mixed evidence for the Q-Q model. What can explain this?

Quality-Quantity Trade-off: Becker’s (1981) theory proposes a quality-quantity tradeoff in fertility choices. Parents pay for having kids (childcare, feeding the child etc.) and well as nurturing the kids (providing education). a. What does Becker’s theory imply about children born in big families? b. To test this model, we need to identify whether it is true that parents would invest more in kids’ quality (e.g. education) if they had fewer kids. Suppose we compare the education of children in large families and small families, and find that children in small families get more education. Does this imply that being born into a large family causes a child to get low education? What mechanisms can you think of that can lead to this association? c. Economists have used twins to test the presence of a quality-quantity trade-off. In fact, we find that there is mixed evidence for the Q-Q model. What can explain this?

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter2: Using Economics To Study Health Issues

Section: Chapter Questions

Problem 2QAP

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