Publication Date: December 2015
Revision Date: July 2017
We estimate production functions for cognition and health for children aged 1-12 in India, where over 70 million children aged 0-5 are at risk of developmental deﬁcits. The inputs into the production functions include parental background, prior child cognition and health, and child investments. We use income and local prices to control for the endogeneity of investments. We ﬁnd that cognition is sensitive to investments throughout the age range we consider, while health is mainly aﬀected by early investments. We also ﬁnd that inputs are complementary, and crucially that health is very important in determining cognition. Our paper contributes in understanding how investments and early health outcomes are important in child development.
Early childhood development, Human capital, India, Nonlinear factor models, Young lives survey, Health, Cognition
JEL Classification Codes: I14, I15, I25, I32, J13, J24, O15