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Parental behavior has potentially large implications for child health and child economic outcomes. In three essays, I explore two topics: how the health behavior of parents impacts their children's health and wellbeing, and the degree to which policy can alter parental behavior such that child health improves. The first essay examines how cash transfers to pregnant single mothers via the Earned Income Tax Credit (EITC) improve child birth weight. The second essay shows that cigarette taxes reduce maternal smoking and improve childhood health outcomes. The final essay documents the correlation between parental and teen smoking using the Current Population Survey Tobacco Use Supplement. As a whole, this dissertation contributes to our understanding of how health transmits from parent to child, an important mechanism in the intergenerational transmission of inequality.