Multiple-output child health production functions: The impact of time-varying and time-invariant inputs

Mark Douglas Agee, Scott E. Atkinson, Thomas D. Crocker

Research output: Contribution to journalArticle

Abstract

Many production activities generate undesirable outputs in conjunction with the desirable outputs. In this paper we present the first estimates of a multiple-input, multiple-output directional distance function that relates good and bad inputs from home, school, and environment to good and bad outputs, measured as children's cognitive and behavioral development. This household directional distance function is estimated using a balanced panel of 369 families from the National Longitudinal Survey of Youth-Child Sample for 1996 to 2000 using the generalized method of moments within estimator and instrumental variables. We recover consistent partial effects for the time-invariant variables in a second-stage regression and estimate their corrected asymptotic standard errors. We then compute and examine productivity differences among households defined as the increase (decrease) in good (bad) outputs that families could attain with constant inputs if they were operating on the technological frontier. Our estimates suggest the presence of significant inefficiency among sample families that diminishes over time.

Original languageEnglish (US)
Pages (from-to)410-428
Number of pages19
JournalSouthern Economic Journal
Volume75
Issue number2
StatePublished - Oct 1 2008

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Time-varying
Health production function
Children's health
Directional distance function
Household
Undesirable outputs
Instrumental variables
Productivity
Generalized method of moments estimator
Standard error
Inefficiency

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

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Multiple-output child health production functions : The impact of time-varying and time-invariant inputs. / Agee, Mark Douglas; Atkinson, Scott E.; Crocker, Thomas D.

In: Southern Economic Journal, Vol. 75, No. 2, 01.10.2008, p. 410-428.

Research output: Contribution to journalArticle

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