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A Stackelberg Model Of Child Support And Welfare

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  • Jennifer Roff

Abstract

This article models the child support and welfare decisions of never‐married parents on welfare as a Stackelberg game. The mother chooses whether to exit welfare, report paternity, and to obtain a formal child support order. If a child support order is obtained, the father chooses whether to comply with the order. Simulation results from the structural parameters indicate that increasing the child support disregard increases paternal compliance slightly and affects maternal paternity reporting more significantly; effects are limited, however, by low paternal incomes. Results also indicate that high award amounts can decrease expected child support payments to women on welfare.

Suggested Citation

  • Jennifer Roff, 2008. "A Stackelberg Model Of Child Support And Welfare," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(2), pages 515-546, May.
    • Handle: RePEc:wly:iecrev:v:49:y:2008:i:2:p:515-546
    DOI: 10.1111/j.1468-2354.2008.00488.x
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    1. Cynthia Miller & Irwin Garfinkel & Sara McLanahan, 1997. "Child Support In The U.S.: Can Fathers Afford To Pay More?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(3), pages 261-281, September.
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    15. repec:bla:revinw:v:43:y:1997:i:3:p:261-81 is not listed on IDEAS
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    1. Single mothers and Stackelberg games
      by Economic Logician in Economic Logic on 2008-08-29 21:01:00

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    1. repec:pri:crcwel:wp10-15-ff is not listed on IDEAS
    2. Urvi Neelakantan, 2009. "The impact of changes in child support policy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(3), pages 641-663, July.
    3. Brandeanna Allen & John Nunley & Alan Seals, 2011. "The Effect of Joint-Child-Custody Legislation on the Child-Support Receipt of Single Mothers," Journal of Family and Economic Issues, Springer, vol. 32(1), pages 124-139, March.
    4. Roff, Jennifer & Lugo-Gil, Julieta, 2012. "A model of child support and the underground economy," Labour Economics, Elsevier, vol. 19(5), pages 668-681.
    5. Francesconi, Marco & Rainer, Helmut & van der Klaauw, Wilbert, 2008. "Unintended Consequences of Welfare Reform: The Case of Divorced Parents," IZA Discussion Papers 3891, Institute of Labor Economics (IZA).
    6. Terry-Ann L. Craigie, 2010. "Child Support Transfers under Family Complexity," Working Papers 1276, Princeton University, School of Public and International Affairs, Center for Research on Child Wellbeing..
    7. Samara Gunter, 2013. "Effects of child support pass-through and disregard policies on in-kind child support," Review of Economics of the Household, Springer, vol. 11(2), pages 193-209, June.

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