All in the Family: A Simultaneous Model of Parenting Style and Child Conduct

The upbringing of children is modeled as a modified principal agent problem in which children attempt to maximize their own well-being when faced with a parenting strategy chosen by the parent, to maximize parent's perception of family well-being. Thus, children as well as parents are players, but children have higher discount rates than parents. The simultaneity of parenting and child behaviour is confirmed using the 1994 Canadian National Longitudinal Survey of Children.