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Credit constraints and the trade‐off between family size and children's investment in Thailand

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  • Aeggarchat Sirisankanan

Abstract

Using three‐wave Thai household panel data covering the years 2005 to 2007, this study examined the effect of liquidity constraints on the quality‐quantity trade‐off for children. The results show that there was a quality‐quantity trade‐off for credit‐constrained households, while there was no such trade‐off for unconstrained households when a 6,000 Baht monthly income and ability to borrow were used as the classifying criteria. The evidence of the Q‐Q trade‐off is less clear when a 15,000 Baht monthly income is used. The quality income elasticity was found to be higher than the quantity income elasticity for credit‐constrained households.

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  • Aeggarchat Sirisankanan, 2020. "Credit constraints and the trade‐off between family size and children's investment in Thailand," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 34(2), pages 133-151, November.
    • Handle: RePEc:bla:apacel:v:34:y:2020:i:2:p:133-151
    DOI: 10.1111/apel.12297
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