The Economics of the Family and Family Policy
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The Economics of the Family and Family Policy

Francisco Cabrillo

This comprehensive and authoritative book offers a global approach to the modern economics of the family, family law and family policy. Beginning with the division of labour in the family, this book deals with the economics of marriage, the demand for children, inter-generational relationships, and the economics of inheritance. The family is analysed using the theory of utility maximisation assuming that individuals wish to achieve the greatest possible satisfaction with limited resources and imperfect knowledge. The family is examined from both long and short term perspectives, and it is assumed that the family is cooperative with incentives for altruistic behaviour greater than in any other social group.
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Chapter 10: Technical Problems involved in an Economic Policy for Family Protection

Francisco Cabrillo


Page 163 10.  Technical problems involved in an economic policy for family protection Having looked at the family support measures existing within the EU and the basis for and possible effects of these policies, we shall now go into some of the most  important matters to be considered when drawing up a specific family support and pro­natalist policy.  1  AID FOR MOTHERS AND INCOME LEVEL A much debated matter in connection with fiscal policy for families is whether or not to link the amount of subsidies and deductions to the beneficiaries’ income. The  programmes for aid in the EU countries adopt varying approaches. In some, child benefit is not related to income and, in others, it is linked from the start with the family  income. And in a third group the income level leads to increases or decreases in the basic fixed amounts. What needs to be determined is whether in these cases two types of subsidy that are based on two very different concepts should be taken together. On the one hand,  in a welfare state, grants are given to those people or families that do not have what are considered by society to be minimum income levels. On the other hand, aid is  offered to women or families which, according to the pattern described above, produce a good for which there is social demand, namely children, irrespective of their  income. Although for the first type income should be the basic criteria for determining the amount of aid...

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