Saglam, Ismail (2011): Divorce costs and marital dissolution in a one-to-one matching framework with nontransferable utilities.
This is the latest version of this item.
Download (309kB) | Preview
In this paper, we use a two-period one-to-one matching model with incomplete information to examine the effect of changes in divorce costs on marital dissolution. Each individual who has a nontransferable expected utility about the quality of each potential marriage decides whether to marry or to remain single at the beginning of the first period. Those who married in the first period learn the qualities of their marriages at the beginning of the second period and then decide whether to stay married or to unilaterally divorce. We show that for any society, there exist matching environments where the probability of the marital dissolution is not decreasing in divorce costs under a gender-optimal matching rule. In such environments an allocation effect of divorce costs with ambiguous sign outweighs an incentive effect which is always negative.
|Item Type:||MPRA Paper|
|Original Title:||Divorce costs and marital dissolution in a one-to-one matching framework with nontransferable utilities|
|Keywords:||One-to-one matching; marriage dissolution; divorce; incomplete information|
|Subjects:||C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C78 - Bargaining Theory; Matching Theory
J - Labor and Demographic Economics > J1 - Demographic Economics > J12 - Marriage; Marital Dissolution; Family Structure; Domestic Abuse
|Depositing User:||Ismail Saglam|
|Date Deposited:||02. May 2012 02:14|
|Last Modified:||17. Feb 2013 20:16|
Allen DW (1992) Marriage and divorce: comment. American Economic Review 82:679-685
Becker GS, Landes E, Micheal R (1977) An economic analysis of marital instability. Journal of Political Economy 85:1141-1188
Bougheas S, Georgellis Y (1999) The effect of divorce costs on marriage formation and dissolution. Journal of Population Economics 12: 489-498
Crawford VP, Rochford SC (1986) Bargaining and competition in matching markets. International Economic Review 27:329-348
Friedberg L (1998) Did unilateral divorce raise divorce rates? Evidence from panel data. American Economic Review 88:608-627
Gale D, Shapley LS (1962) College admissions and the stability of marriage. American Mathematical Monthly 69:9-15
Gonzalez L, Viitanen TK (2009) The effect of divorce laws on divorce rates in Europe. European Economic Review 53:127-138
Gruber J (2004) Is making divorce easier bad for children? The long run implications of unilateral divorce. Journal of Labor Economics 22:799-833
Kneip T, Bauer G (2009) Did unilateral divorce laws raise divorce rates in Western Europe? Journal of Marriage and Family 71:592-607
Knuth DE (1976) Marriages Stables. Montreal: Les Presses de l'Universite de Montreal.
Mumcu A, Saglam I (2008) Marriage formation/dissolution and marital distribution in a two-period economic model of matching with cooperative bargaining. Journal of Artificial Societies and Social Simulation 11
Peters HE (1986) Marriage and divorce: informational constraints and private contracting. American Economic Review 76:437-454
Rasul I (2006) Marriage markets and divorce laws. Journal of Law, Economics, and Organization 22:30-69
Wolfers J (2003) Did unilateral divorce laws raise divorce rates? A reconciliation and new results. NBER Working Paper No. 10014
Wolfers J (2006) Did unilateral divorce raise divorce rates? A reconciliation and new results. American Economic Review 96:1802-1820
Available Versions of this Item
Divorce costs and marital dissolution in a one-to-one matching framework with nontransferable utilities. (deposited 03. Oct 2011 01:45)
- Divorce costs and marital dissolution in a one-to-one matching framework with nontransferable utilities. (deposited 02. May 2012 02:14) [Currently Displayed]