Yurko, Anna (2012): Costly Divorce and Marriage Rates.
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This paper develops a model of choice between marriage and cohabitation to study the effect of divorce costs on marriage decision. The paired agents are heterogeneous, the utility is non-transferable, and break up and divorce decisions are modeled explicitly as unilateral, that is, it takes the decision of only one partner to terminate a relationship. This framework is empirically relevant, since unilateral divorce is legal in many countries, and multiple empirical studies of the effect of changes in divorce laws on divorce rates demonstrate that Coase theorem does not hold (partners cannot bargain efficiently). The model seeks to reconcile the conflicting empirical evidence on the relationship between marriage rates and divorce costs.
|Item Type:||MPRA Paper|
|Original Title:||Costly Divorce and Marriage Rates|
|Keywords:||family economics; marriage; cohabitation; divorce; externalities|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D62 - Externalities
J - Labor and Demographic Economics > J1 - Demographic Economics > J12 - Marriage ; Marital Dissolution ; Family Structure ; Domestic Abuse
|Depositing User:||Anna Yurko|
|Date Deposited:||03. Apr 2012 19:31|
|Last Modified:||13. Feb 2013 04:31|
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