Expenditure Decisions of Divorced Mothers and Income Composition
AbstractIn this paper we analyze the relationship between the income sources of custodial divorced parents and their expenditure patterns. We use data from the Consumer Expenditure Survey to directly investigate the issue of whether or not divorced mothers receiving child support income spend larger amounts on "child goods" than those not receiving child support holding total household income constant. By comparing the estimated coefficients on child support income and other income in an "endogenous" Engel curve specification we argue that we can classify child goods as being public or private and say something about the expenditure patterns of noncustodial fathers under a Nash equilibrium model of parental expenditures on public child goods and some plausible assumptions regarding the manner in which child support transfer decisions are made by noncustodial fathers. Our empirical results indicate that income composition does affect the expenditure patterns of divorced mothers and that consumption externalities exist even among divorced parents.
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Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Journal of Human Resources.
Volume (Year): 29 (1994)
Issue (Month): 3 ()
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Web page: http://jhr.uwpress.org/
Other versions of this item:
- del Boca, D. & Flinn, C.J., 1992. "Expenditure Decisions of Divorced Mothers and Income Composition," Working Papers 92-40, C.V. Starr Center for Applied Economics, New York University.
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- Christine Hauser, 2008. "Child Support Enforcement and Children's Consumption," 2008 Meeting Papers 630, Society for Economic Dynamics.
- Steven Garasky & Susan Stewart, 2007. "Evidence of the Effectiveness of Child Support and Visitation: Examining Food Insecurity among Children with Nonresident Fathers," Journal of Family and Economic Issues, Springer, vol. 28(1), pages 105-121, March.
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- Whitaker, James B. & Effland, Anne, 2009. "Income Stabilization Through Government Payments: How Is Farm Household Consumption Affected?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(1), April.
- Steven Garasky & Susan D. Stewart, 2006. "Evidence of the Effectiveness of Child Support and Visitation: Examining Food Insecurity among Children with Nonresident Fathers," Working Papers 0603, Harris School of Public Policy Studies, University of Chicago.
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- Peter Kooreman, 2000. "The Labeling Effect of a Child Benefit System," American Economic Review, American Economic Association, vol. 90(3), pages 571-583, June.
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