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The Economics of Child Custody

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Author Info
IMRAN RASUL

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Abstract

I develop a model of marriage in which spouses decide on investments in child quality during marriage, and on the allocation of child custody should they divorce. The custodial allocation determines the share of the marital surplus each spouse appropriates, which in turn influences spouses' investment incentives. The custodial allocation therefore has both "distributional" and "efficiency" consequences. I derive the equilibrium investments and optimal custodial allocation, and identify three channels through which making divorce easier affects child welfare: investments in child quality during marriage, the likelihood of divorce, and the allocation of custody if divorce occurs. Copyright (c) The London School of Economics and Political Science 2006.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0335.2006.00445.x
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Publisher Info
Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 73 (2006)
Issue (Month): 289 (02)
Pages: 1-25
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Handle: RePEc:bla:econom:v:73:y:2006:i:289:p:1-25

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  1. Christine Atteneder & Martin Halla, 2007. "Bargaining at Divorce: The Allocation of Custody," IZA Discussion Papers 2544, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Joaquín Andaluz & Miriam Marcén & José Alberto Molina, 2007. "Income Transfers, Welfare and Family Decisions," IZA Discussion Papers 2804, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Chiappori, Pierre-André & Iyigun, Murat & Weiss, Yoram, 2008. "An Assignment Model with Divorce and Remarriage," IZA Discussion Papers 3892, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Helmut Rainer, 2005. "Should We Write Prenuptial Contracts?," Discussion Paper Series, Department of Economics 0514, Department of Economics, University of St. Andrews. [Downloadable!]
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  5. Francesconi, Marco & Muthoo, Abhinay, 2003. "An Economic Model of Child Custody," CEPR Discussion Papers 4054, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Martin Halla, 2005. "Unterhalt, Obsorge und Scheidungsanwälte: Eine ökonometrische Untersuchung der einvernehmlichen Scheidung in Österreich," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(IV), pages 501-525, December. [Downloadable!]
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  7. Helmut Rainer, 2008. "Gender discrimination and efficiency in marriage: the bargaining family under scrutiny," Journal of Population Economics, Springer, vol. 21(2), pages 305-329, April. [Downloadable!] (restricted)
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  8. Nunley, John M. & Seals, Alan, 2009. "Child-Custody Reform and Marriage-Specific Investment in Children," MPRA Paper 16313, University Library of Munich, Germany. [Downloadable!]
  9. repec:ese:iserwp: is not listed on IDEAS
  10. Maija Halonen-Akatwijuka & Evagelos Pafilis, 2009. "Reputation and Ownership of Public Goods," The Centre for Market and Public Organisation 09/211, Department of Economics, University of Bristol, UK. [Downloadable!]
  11. Marco Francesconi & Helmut Rainer & Wilbert van der Klaauw, 2007. "The Effects of In-Work Benefit Reform in Britain on Couples: Theory and Evidence," CRIEFF Discussion Papers 0709, Centre for Research into Industry, Enterprise, Finance and the Firm. [Downloadable!]
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  12. Marco Francesconi & Abhinay Muthoo, 2006. "Control Rights in Public-Private Partnerships," IZA Discussion Papers 2143, Institute for the Study of Labor (IZA). [Downloadable!]
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