According to Pareto (1896), the distribution of income depends on ``the nature of the people comprising a society, on the organization of the latter, and, also, in part, on chance.'' In the model developed here the ``nature of the people'' is captured by attitudes toward marriage, divorce, fertility, and children. Singles search for mates in a marriage market. Married agents bargain about work, and the quantity and quality of children. They can divorce. Social policies, such as child support requirements, reflect the ``organization of the (society).'' Finally, ``chance'' is modelled by randomness in income, marriage opportunities, and marital bliss.
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Paper provided by University of Rochester - Center for Economic Research (RCER) in its series RCER Working Papers with number
489.
Length: 55 pages Date of creation: Mar 2002 Date of revision: Publication status: Forthcoming, International Economic Review Handle: RePEc:roc:rocher:489
Contact details of provider: Postal: UNIVERSITY OF ROCHESTER, CENTER FOR ECONOMIC RESEARCH, DEPARTMENT OF ECONOMICS, HARKNESS 231 ROCHESTER NEW YORK 14627 U.S.A.
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
S. Rao Aiyagari & Jeremy Greenwood & Nezih Guner, 2000.
"On the State of the Union,"
Journal of Political Economy,
University of Chicago Press, vol. 108(2), pages 213-244, April.
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