Abstract
In Dasguptas' survey, "The Population Problem: Theory and Evidence" [Journal of Economic Literature, December 1995], family structure as a determinant of the fertility decision was explicitly mentioned and its empirical importance was later denied. In contrast, in sociological studies, the importance of the distinction between extended family and nuclear family has been emphasized [Hareven, "Historical Analysis of the Family," Handbook of Marriage and the Family, 1987, pp. 40-2]. Therefore, this article presents theoretical arguments connecting family structure and the fertility decision. It is hoped that the rationale for incorporating family structure into demand for children can be better understood. Following standard practice, the representative couple is postulated to maximize their joint utility under household budgetary constraints. In Lagrangean form:
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