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Children as public goods
Value of one additional birth
Net Present Value of the Fiscal Impact of an incremental Birth
Nancy Folbre. The American Economic Review, Vol. 84, No. 2, Papers and Proceedings of the Hundred
and Sixth Annual Meeting of the American Economic Association (May, 1994), pp. 86‐90 5
Education of parent
Present value variation discount rate
2% 3%
4%
6%
8%
< High school
$362,000
$92,000
$12,000
‐$32,000
‐$39,000
High school
$495,000
$171,000
$61,000
‐$10,000
‐$28,000
> High school
$621,000
$245,000
$106,000
$9,000
‐$18,000
Lee & Edwards. The Fiscal Impact of Population Change. 2001. http://www.bos.frb.org/economic/conf/conf46/conf46g1.pdf 6
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