Efficient investment in children

• 成果类型: Article
• 署名作者: Aiyagari, SR; Greenwood, J; Seshadri, A
• 署名单位: University of Rochester; University of Wisconsin System; University of Wisconsin Madison
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1006/jeth.2001.2852
• 发表日期: 2002
• 页码: 290-321
• 关键词: investment in children; EFFICIENCY; imperfect financial markets; impure altruism; lack of child-care markets

摘要

Many would say that children are society's most precious resource. So, how should we invest in them? To gain insight into this question, a dynamic general equilibrium model is developed where children differ by ability. Parents invest time and money in their offspring, depending on their altruism. This allows their children to grow up as more productive adults. First, the efficient allocation is characterized, Next, this is compared with the outcome that arises when Financial markets are incomplete. The situation where child-care markets are also lacking is then examined. Additionally, the consequences of impure altruism are analyzed. (C) 2001 Elsevier Science.