Surveying the field of the economics of the household, the second edition of this text reviews the theory of the consumer at the intermediate undergraduate level. It then applies and extends it to consumer demand and expenditures, consumption and saving, time allocation among market work, home work, and leisure, human capital emphasizing investment in education, children and health, fertility, marriage, and divorce. Influenced by Gary Becker and his associates, the models developed are used to help explain modern U.S. trends in family behavior. Topics are discussed with the aid of geometry and a little algebra. For those with calculus, mathematical endnotes provide the models on which the text discussions are based and interesting applications beyond the scope of the text.
• First edition used broadly across U.S., Canada and in some places in the UK and Europe • New features include coverage of consumption and work behavior over the life cycle, treatment of health and prenatal child care as investments • Reviews economic justifications for marriage, birth rates, returns to education
1. Introduction; 2. Household equilibrium; 3. The analysis of consumer demand; 4. Consumption and saving; 5. Work and leisure: how the household spends its time; 6. Human capital: investing in oneself and one's family; 7. The economics of fertility; 8. The economics of marriage and divorce.