Using a nationally representative data from 3 waves of Tanzania National Panel Survey
(TZNPS), we estimate the effects of household asset ownership and community assets on
educational and health outcomes of children. We start with a simple modification of the
quantity-quality tradeoff model to show a theoretical relationship between assets and child
outcomes. Empirically, using the panel data random effects models, we are able to establish
a causal relationship between child wellbeing and asset ownership. After controlling for
household income proxied by current consumption, we find that assets have significant
effects on both educational and health outcomes of children. Although assets have positive
effects on child health outcomes, effect on educational outcome is asset specific. Household
and community assets have positive effects on child educational performance but
agricultural assets have adverse effects.