There is a rising crisis-consciousness in Japan that the decline of fertility rates may result in retarding a healthy social development. Two things can account for this declining fertility rates : the value of having a child have changed ; the cost of raising a child have soared. Nevertheless, in considering the prosperity of future society resting upon children, the greater responsibility should be taken to meet the increasing demand for the number of children. The study was done accordingly to decide whether it was feasible to regard a child as public goods or social goods instead of private goods as in the past. The supply of some goods left to the market principle, the optimum number to the market may not be attained from a social point of view. In case the supply is unstablized, it is possible to compensate the shortage with the externality upon which a public policy relies. In Japan, if the domestic household market principle can decide the number of children for each family to have, there may be a chance of not fulfilling the adequate numbers of children needed for the society. Of course it is debatable to look on a child as pure public goods. However, in reflecting upon the value of having a child for the future society or the collective benefit from having a child ... etc, the rationality exists that parts of the cost of a child birth and a child raising should be paid publicly. Therefore, structuring the social system should be aimed at which will make possible, to certain extent, the financial support from a society.
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