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How to Carve a Medical Degree: Human Capital Assets in Divorce Settlements

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  • Borenstein, Severin
  • Cournat, Paul N

Abstract

This paper examines effects of the legal rules for property division at divorce on investment in human capital during marriage. The authors show that current rules generally lead to suboptimal levels of investment and spousal support, or to inequitable distribution of the returns from such investment, or both. They propose a new rule that performs better than the existing rules on both efficiency and equity criteria and that requires no more information than the existing rules. Copyright 1989 by American Economic Association.

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 79 (1989)
Issue (Month): 5 (December)
Pages: 992-1009

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Handle: RePEc:aea:aecrev:v:79:y:1989:i:5:p:992-1009

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Cited by:
  1. Cremer, Helmuth & Pestieau, Pierre & Roeder, Kerstin, 2012. "United but (un)equal: human capital, probability of divorce and the marriage contract," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 755, Institut d'Économie Industrielle (IDEI), Toulouse.
  2. Henrekson, Magnus & Dreber, Anna, 2004. "Female Career Success: Institutions, Path Dependence and Psychology," Working Paper Series in Economics and Finance 574, Stockholm School of Economics, revised 27 Jan 2005.
  3. Dufwenberg, Martin, 1996. "Time Consistent Matrimony with Endogenous Trust," Working Paper Series, Uppsala University, Department of Economics 1997:1, Uppsala University, Department of Economics.
  4. Holahan, William L & Perlman, Richard, 1991. "How to Carve a Medical Degree: Comment," American Economic Review, American Economic Association, American Economic Association, vol. 81(4), pages 1015-16, September.
  5. Samuel A. Rea, Jr., 1995. "Breaking Up is Hard to Do: The Economics of Spousal Support," Working Papers reas-95-01, University of Toronto, Department of Economics.
  6. Ian Smith, 2003. "The Law and Economics of Marriage Contracts," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 17(2), pages 201-226, 04.
  7. Shelly Lundberg & Robert A. Pollak, 2013. "Cohabitation and the Uneven Retreat from Marriage in the U.S., 1950-2010," NBER Chapters, in: Human Capital in History: The American Record National Bureau of Economic Research, Inc.
  8. Dufwenberg, Martin, 2002. "Marital investments, time consistency and emotions," Journal of Economic Behavior & Organization, Elsevier, vol. 48(1), pages 57-69, May.

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