Fella, Giulio (Queen Mary, University of London) Manzini, Paola () (Queen Mary, University of London and IZA, Bonn) Mariotti, Marco (University of Exeter)
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In this paper we derive an explicit model of negotiations between spouses when utility is (partially) transferable only in case of separation. We show that inefficient separation may occur in equilibrium even under consensual divorce law. This provides theoretical support for the view that changes in social norms rather than in legislation may be responsible for increasing divorce rates.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
439.
Giulio Fella & Paola Manzini & Marco Mariotti, 2002.
"Does Divorce Law Matter?,"
Working Papers
454, Queen Mary, University of London, Department of Economics.
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Find related papers by JEL classification: C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
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