TITLE:
Modeling the Relationship between Parents Valuing the Importance of Children’s Education Relative to Parents’ Entertainment and Parents’ Well-Being and Investment Behavior in Education
AUTHORS:
Tin-Chun Lin
KEYWORDS:
Children’s Education, Parental Well-Being, Parental Investment Behavior in Education, Economic Theoretical Model
JOURNAL NAME:
Theoretical Economics Letters,
Vol.11 No.6,
November
16,
2021
ABSTRACT: We used the theory of consumer choice to build a
model that links the relationship between how much parents value the importance
of children’s education relative to parents’ entertainment and parents’ utility
(well-being) and investment behavior in education. Our theoretical analysis
suggests that parents valuing the importance of children’s education relative
to parents’ entertainment are positively associated with parents’ demand for
their children’s education, but the effect is uncertain on parental utility.
With graphical proof, we found a certain and clear positive effect—parents’
utility indeed increases when parents increase their valuation on the importance
of children’s education relative to parents’ entertainment. The main
contribution of this study is in framing an economic theoretical model that can
be useful in constructing empirical models for further investigation of this
issue.