We use estimates of parents' discount rate, inferred from their decisions to treat their children's body burdens of lead, to test empirically a model of transmission of cognitive skills from parents to children. The development of a child's cognitive skills depends in part upon the specific environment in which the skills are nurtured. The parental discount rate serves as a theoretically well defined index for a broad array of nurturing investments in the child. We find that children whose parents have a lower estimated discount rate exhibit higher assessed cognitive skills.
|Original language||English (US)|
|Number of pages||12|
|State||Published - Jan 1 2002|
All Science Journal Classification (ASJC) codes
- Economics and Econometrics