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Marriage, Divorce and Reciprocity-based Cooperation

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  • Dan Anderberg

Abstract

This paper considers partnership formation, partnership dissolution and reciprocity-based cooperation by couples in the form of voluntary transfers to smooth consumption. While risk sharing is one benefit of having a partner, it is also limited by the (endogenous) risk of separation. The equilibrium formation and dissolution of partnerships are determined simultaneously with cooperative behavior. Publicly provided earnings insurance is shown to increase the "turnover" rate in the marriage market as well as to reduce the steady-state marriage rate and the implicit financial cooperation between partners. Copyright The editors of the "Scandinavian Journal of Economics" 2007 .

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 109 (2007)
Issue (Month): 1 (03)
Pages: 25-47

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Handle: RePEc:bla:scandj:v:109:y:2007:i:1:p:25-47

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442

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Cited by:
  1. Halla, Martin & Lackner, Mario & Scharler, Johann, 2013. "Does the Welfare State Destroy the Family? Evidence from OECD Member Countries," IZA Discussion Papers 7210, Institute for the Study of Labor (IZA).
  2. Martin Halla & Johann Scharler, 2012. "Marriage, Divorce, and Interstate Risk Sharing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(1), pages 55-78, 03.
  3. Alessandro Balestrino & Cinzia Ciardi & Claudio Mammini, 2008. "On the Causes and Consequences of Divorce," CESifo Working Paper Series 2347, CESifo Group Munich.

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