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A Search Model of Marriage and Divorce

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  • Tracy J. Cornelius

    (University of Wales, Swansea)

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    Abstract

    This paper analyses long term partnership formation in a marriage market in which individuals continue to search for partners while matched. Individuals prefer relationships which offer more instantaneous utility but they also prefer more stable relationships. A relationship is more stable for one partner if there is less chance that the other partner will leave. An individual is more inclined to leave a relationship which offers less instantaneous utility and less stability. Since both partners are making these evaluations, the stability of the relationship for one companion depends on the stability of the relationship for the other and as such, separation rates are endogenous. It is shown that these feedback effects in search strategies generate a new type of multiple equilibria in which particular matches can be either stable or unstable depending on individuals beliefs. (Copyright: Elsevier)

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    File URL: http://dx.doi.org/10.1016/S1094-2025(02)00012-1
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    Bibliographic Info

    Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

    Volume (Year): 6 (2003)
    Issue (Month): 1 (January)
    Pages: 135-155

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    Handle: RePEc:red:issued:v:6:y:2003:i:1:p:135-155

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    References

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    1. Peter A. Diamond & Eric Maskin, 1979. "An Equilibrium Analysis of Search and Breach of Contract, I: Steady States," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 282-316, Spring.
    2. Shimer, R. & Smith, L., 1998. "Assortive Matching and Search," Papers 98-09, Michigan - Center for Research on Economic & Social Theory.
    3. Kenneth Burdett & Ryoichi Imai & Randall Wright, 2004. "Unstable Relationships," The B.E. Journal of Macroeconomics, De Gruyter, vol. 0(1), pages 1.
    4. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
    5. Jan Eeckhout, 1996. "Bilateral Search and Vertical Heterogeneity," STICERD - Theoretical Economics Paper Series 315, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    6. Wright, Randall, 1986. "Job Search and Cyclical Unemployment," Journal of Political Economy, University of Chicago Press, vol. 94(1), pages 38-55, February.
    7. P. Diamond, 1980. "Aggregate Demand Management in Search Equilibrium," Working papers 268, Massachusetts Institute of Technology (MIT), Department of Economics.
    8. Lones Smith, 2006. "The Marriage Model with Search Frictions," Journal of Political Economy, University of Chicago Press, vol. 114(6), pages 1124-1146, December.
    9. Burdett, Kenneth & Coles, Melvyn G, 1999. "Long-Term Partnership Formation: Marriage and Employment," Economic Journal, Royal Economic Society, vol. 109(456), pages F307-34, June.
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    Cited by:
    1. Pieter A. Gautier & Michael Svarer & Coen N. Teulings, 2007. "Sin City?," Tinbergen Institute Discussion Papers 07-021/3, Tinbergen Institute.
    2. Nobuhiro Kiyotaki & Ricardo Lagos, 2006. "A model of job and worker flows," Staff Report 358, Federal Reserve Bank of Minneapolis.
    3. Mario Vozar, 2010. "The Effect of Time in a Multi-Dimensional Marriage Market Model," CERGE-EI Working Papers wp417, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
    4. Pieter A. Gautier & Michael Svarer & Coen N. Teulings, 2007. "Sin City?," CAM Working Papers 2007-01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    5. Epstein, Gil S. & Lindner Pomerantz, Renana, 2012. "Assimilation through Marriage," IZA Discussion Papers 6831, Institute for the Study of Labor (IZA).
    6. Giolito, Eugenio P., 2004. "A Search Model of Marriage with Differential Fecundity," IZA Discussion Papers 1082, Institute for the Study of Labor (IZA).
    7. Eugenio P. Giolito, 2010. "On Population Structure and Marriage Dynamics," 2010 Meeting Papers 1178, Society for Economic Dynamics.
    8. Coles, Melvyn & Francesconi, Marco, 2007. "On the Emergence of Toyboys: Equilibrium Matching with Ageing and Uncertain Careers," IZA Discussion Papers 2612, Institute for the Study of Labor (IZA).
    9. Gil S. Epstein & Renana Lindner Pomerantz, 2012. "Assimilation through Marriage," CReAM Discussion Paper Series 1220, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    10. Gil S. Epstein & Renana Lindner Pomerantz, 2012. "Assimilation through Marriage," Working Papers 2012-11, Department of Economics, Bar-Ilan University.

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