This work deals with an issue of fertility decline in developed countries from a perspective of relationship between the family and the market economy. The family is perceived as an externality with respect to theoretical economic framework as well as to real economy of the Czech Republic in the period of economic transition. In other words, neither theory nor applied policy fully reflects contribution of the family for the whole society. The thesis goes into the family specification from distinct standpoints, its development within time, relationship to economy and briefly introduces economic approaches to the family at both micro and macro level. In addition, the thesis carries out analyses of Czech data in the period 1989-2010. While the macro analysis is focused on interaction between fertility and economy performance, the micro analysis is devoted to financial support provided by state to the family via the social scheme and the tax system.