The family and the state: a public choice perspective

The family is an institution within which exchange takes place. The state depends on the productivity of families for its current and future revenues. Yet, work on family policy often ignores the role of local knowledge, incentives, and special interests, while families themselves are often overlooked in accounts of the unintended consequences of public policy. The work of Julian Simon is a notable exception. Building upon his insights about the family’s production of children in particular, this paper offers a way to think about family policy that is consistent with both family economics and public choice. I conclude by applying some basic principles to better understand three patterns: the gap between intended and actual fertility in the developing world today, the lack of successful pro-natal public policy, and the oscillation of totalitarian family policy.