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Abstract
We estimate a directional distance function to assess the impacts of multiple time-varying
parent and child inputs on a cluster of jointly produced child outcomes for children
aged 7 to 13 years. The directional distance function specification avoids several well-known
empirical problems associated with analysis of household production data, namely,
the need to aggregate inputs and outputs, assume separability among inputs and outputs,
or estimate reduced form equations. Using a balanced panel of families from the National
Longitudinal Survey of Youth-Child Sample for 1996 to 2000, we assess the marginal contributions
of home and neighborhood environmental quality and children's time allocations,
on their math and reading performance, behavior problems, and body mass index. We
also measure productivity growth, technical change, efficiency change, and technical efficiency for production of child outcomes. Our results indicate significant jointness among
good and bad child outcomes. Significant improvements in children's good outcomes and
reductions in bad outcomes are also associated with a better home and parent perceived
neighborhood environment, Head Start participation, and increased family time spent together
during meals. Children's productivity growth is found to be highest at age 8 years
and diminishes thereafter.