Within the context of an explicit model of endogenous risk, we have presented the first empirical evidence that parents discount investments which affect the adult prospects of their children. These rates, which numerous authors show affect the intergenerational transmission of human capital, are strongly influenced by household circumstances.
Southern Economic Journal
Agee, M. D. and Crocker, Thomas D. (1996). "Parents' Discount Rates for Child Quality." Southern Economic Journal 63.1, 36-50.