IDEAS home Printed from https://ideas.repec.org/a/wsi/igtrxx/v08y2006i04ns0219198906001119.html
   My bibliography  Save this article

An Economic Analysis Of Financial Support After Divorce

Author

Listed:
  • KORNELIUS KRAFT

    (Department of Economics, University of Dortmund, Vogelpothsweg 87, D-44227 Dortmund, Germany)

  • PIA STEBLER

    (Res Publica Consulting AG, Helvetiastrasse 5, CH-3005 Bern, Switzerland)

Abstract

This paper analyses whether the effect of compensation of former spouses after divorce has an impact on the probability of divorces occurring. In particular, it is assumed that the income difference after divorce is shared equally between former spouses, in line with rules in Germany. The reference situation within the marriage is, on the one hand, Nash-bargaining and, on the other, Becker-type altruistic sharing. It turns out that sharing increases the probability of divorce where there are no changes in labor supply. If labor supply is adjusted to the sharing rules after divorce, no general result is possible. If productivity is similar, the sharing rule will lead to less divorces than in the absence of such a regulation. However with large productivity differences separations are more probable in the case of income sharing compared to a situation without such a compensation. Labor supply adjustment in general reduces the number of divorces compared to the situation without labor supply adjustment.

Suggested Citation

  • Kornelius Kraft & Pia Stebler, 2006. "An Economic Analysis Of Financial Support After Divorce," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 8(04), pages 561-579.
    • Handle: RePEc:wsi:igtrxx:v:08:y:2006:i:04:n:s0219198906001119
    DOI: 10.1142/S0219198906001119
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219198906001119
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219198906001119?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fahn, Matthias, 2011. "Three Essays on Commitment and Information Problems," Munich Dissertations in Economics 13750, University of Munich, Department of Economics.

    More about this item

    Keywords

    Divorce laws; bargaining; alimony determination; marital dissolution; JEL Classification: J12;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:igtrxx:v:08:y:2006:i:04:n:s0219198906001119. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/igtr/igtr.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.