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Canada (161,798)
Economics (924)
ECN 340 (22)
Chapter 6

ECN340– Chapter 6.docx

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Department
Economics
Course
ECN 340
Professor
Thomas Barbiero
Semester
Fall

Description
The Production of Children – Chapter 6 • Children are a source of consumption • Children are an object of investment  Children as an Economic Good • Parents get companionship  • Someone to talk to • Take a walk with  • Parents enjoy being respected and adored  • Children bring PLEASURE  • In the past, Children = Old Age Plan (pension)  • In the past insurance not well developed, therefore, children were an insurance  policy • Why can children be a “bad” insurance policy?  • Children can be an important source of labor­ especially is they are less expensive  than machines.  • Parents buy immortality with children • Some parents live through their children; they get vicarious satisfaction • Parents that get a great amount of benefit from children will produce more o them  (Ceteris paribus)  Cost of Children • Giving birth (pain) • Food • Clothing • Shelter • Education • Entertainment  • Medical expenses  • Insurance  • Transportation  • Emotional drain • Time of the parents (most important input to having children)  Demand and Supply of Children  • Child comes when OWN WILL, therefore there are always possible surprises  (behavior etc) • Cannot send one back! Even after you are tired of him/her  • Some children are “accidents”  • Demand is downward sloping  • Total demand for children is influenced by: 1. Tate (ceteris paribus)  2. Prices of other goods – cars, houses, vacations etc (ceteris paribus) 3. Income (ceteris paribus)  • Overtime, preferences may turn from quantity to quality  • Quality requires more investment  • Anything that brings d
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