ECN 340 Chapter Notes - Chapter 5: Ceteris Paribus, Dan Scott, Negative Cost
11 Dec 2013
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Someone to talk to, take a walk with. In the past children = old age plan (having children just to have someone to rely on when older) In the past insurance not well developed, therefore, children were an insurance policy. Could decide when older that they don"t want to look after their parent. Children (were) can be an important source of labour- especially if they are less expensive than machines! Parents buy immortality (the ability to live forever; eternal life) with children. Some parents live through their children; they get vicarious satisfaction. Ex. parents get satisfaction through child if they didn"t go to university and their child does. Parents that get a great amount of benefit from children will produce more of them (ceteris paribus) Child comes with own will, therefore always possible surprises. Some children are accidents demand is downward sloping. Prices of goods- cars, houses, vacations, etc. (ceteris paribus) Over time, preferences may turn from quantity to quality.
