Are Children a Normal Good or an Inferior Good? A Critique to the Neoclassical Theory

2019 Gazi Journal of Economics and Business  
This study analyzes the neoclassical theory on the demand for children. Neoclassical theory assumes that child demand is not different from a commodity demand. The neoclassical theory takes child demand in the utility function, like any other commodities. But, the demand for children is different from things which increase our utility; such as car, refrigerator, elevator, and other goods and services, whose price is determined in the market through its sellers and buyers. However, demand for
more » ... ever, demand for children is determined by socio-cultural things. It is certain that there is a relationship between economic growth and child rearing. For example, economic growth raises the cost of children due the time spent on child care becoming more valuable. But it cannot be called "child demand is an inferior good".
doi:10.30855/gjeb.2019.5.3.001 fatcat:6rm67pu7zjelrnc46canilhpoe