Demand for Children among Rural Families: Children as a Consumption Utility

Abstract

In recent years, fertility has become an important subject of inquiry for economists. The decision to have children and their number and timing involve trade-offs which constrain the purchase and consumption of durables and other household items vying for the family's scarce resources. Moreover, resources are spent on products and services used in the prevention of childbirth and in childrearing. Both the bearing and rearing of children are costly activities; goods and services invested on children have to be purchased in the market by paying a
price. In addition, the time of parents, particularly the mother's time, is an important input in childbearing and rearing, and has an opportunity cost. In return, parents derive pleasure from having their own children [1]. This is
termed as 'benefits' or utility from children. Parents allocate their resources among various items which yield satisfaction, including the number of children, such that they derive the maximum satisfaction.