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To Divorce Or Not To Divorce: Is This A Property Tax Problem?

Author

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  • Raffaella Santolini

    (Dipartimento di Scienze Economiche e Sociali - Universita' Politecnica delle Marche)

Abstract

The decision to end a marriage may depend on economic reasons such as more advantageous tax breaks obtained through a divorce. The paper examines the role played by property tax in influencing decisions of marital separation and divorce in Italian municipalities over the years 2001-2007. Empirical analysis shows that there is a significant increase in divorces and marital separations as the difference between the municipal secondary and primary home tax rate increases. Women are more inclined than men to separate and divorce when the municipal property tax rates differences become larger.

Suggested Citation

  • Raffaella Santolini, 2021. "To Divorce Or Not To Divorce: Is This A Property Tax Problem?," Working Papers 451, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    • Handle: RePEc:anc:wpaper:451
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    More about this item

    Keywords

    property tax; divorce; marital separation; Italian municipalities;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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