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Does Divorce Law Matter?

Author

Listed:
  • Giulio Fella

    (Queen Mary, University of London)

  • Paola Manzini

    (Queen Mary, University of London and IZA)

  • Marco Mariotti

    (Queen Mary, University of London)

Abstract

In this paper we derive an explicit model of negotiations between spouses when unconstrained transfers are possible 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. (JEL: C78, J120) Copyright (c) 2004 The European Economic Association.

Suggested Citation

  • Giulio Fella & Paola Manzini & Marco Mariotti, 2004. "Does Divorce Law Matter?," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 607-633, June.
    • Handle: RePEc:tpr:jeurec:v:2:y:2004:i:4:p:607-633
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    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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