The motives for raising children have historically been influenced by values, norms, and preferences. However children have now come to be seen in economic terms as an increasingly public good and parents as an increasingly public service. Economists have difficulty placing children into a neat category. At times, they have been described as consumer durables, investment goods, and public goods with both positive and negative externalities. This article suggests that family policy has important macroeconomic implications and seeks to analyze how the consequences of raising children are now changing. The main topics discussed include economic development and the cost of raising children, public finance and unpaid labor, and new directions for family policy.
