On the Specification and Estimation of the Production Function for Cognitive Achievement

Abstract

This paper considers methods for modelling the producLion lLinction for cognitive achieve-ment in a way that captures theoretical notions thai child development is a cumulative process depending on the history of family and school inputs and on innate ability. It develops a general modelling framework that accommodates many of the estimating equations used in the literatures. It considers different ways of addressing data limitations, and it makes precise the identifying assumptions needed to justify alternative approaches. Commonly used specifica-tions are shown to place restrictive assumptions on ihe production technology'. Ways of testing modelling assumptions and of relaxing them are discussed. An extensive, mullidisciplinar) empirical literature studies the determinants of cognitivt ' achievement in children. The early childhood developmer\\t (ECD) branch of this literature seeks to understand the role of parental characteristics and the early home environment in producing cognitive skills. The education production function (EPF) hranch of the literature examines the productivity relationship between schooling inputs and test score outcomes for school-age children.

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