We examine the second-best family policy under the assumption that both the number and the future earning capacities of the children born to a couple are random variables with probability distributions conditional on unobservable parental actions. Potential parents take their decisions without...

Introduction -- Children and the economy -- Commitments and capabilities -- Defining the costs of children -- Children and family budgets / with Tamara Ohler -- Children outside the household -- Accounting for family time / with Jayoung Yoon -- Valuing family work -- Subsidizing parents --...