Source: David Friedman’s Substack
by David Friedman
“Someone invents an inexpensive and reliable way in which parents can choose the gender of their offspring. From the economic standpoint, this represents an increase in quality — you get a child of your preferred gender instead of a fifty-fifty chance — at no significant increase in cost. Increased quality at constant cost corresponds to decreased cost at constant quality; you are now getting more for your money. Lowering the cost of something increases the quantity demanded. Do you conclude that, as a result of the new invention, the birth rate goes up? If not, why not? Are children Giffen goods?” (10/14/26)