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Expenditure Decisions of Divorced Mothers and Income Composition

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  • Daniela Del Boca
  • Christopher J. Flinn

Abstract

In 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 Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 29 (1994)
Issue (Month): 3 ()
Pages: 742-761

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Handle: RePEc:uwp:jhriss:v:29:y:1994:iii:1:p:742-761

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Web page: http://jhr.uwpress.org/

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Cited by:
  1. Christine Hauser, 2008. "Child Support Enforcement and Children's Consumption," 2008 Meeting Papers 630, Society for Economic Dynamics.
  2. 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.
  3. D. Del Boca & C. J. Flinn, . "Welfare effects of fixed and percentage-expressed child support awards," Institute for Research on Poverty Discussion Papers 1041-94, University of Wisconsin Institute for Research on Poverty.
  4. Ian Walker & Yu Zhu, 2008. "Child Support and Educational Outcomes: Evidence from the British Household Panel Survey," Studies in Economics 0811, Department of Economics, University of Kent.
  5. Daniela Del Boca, 2003. "Mothers, fathers and children after divorce: The role of institutions," Journal of Population Economics, Springer, vol. 16(3), pages 399-422, 08.
  6. Welling, Linda & Bearance, Marci, 2002. "Who's minding the kids? An economic comparison of sole and joint custody," The Journal of Socio-Economics, Elsevier, vol. 31(1), pages 15-29.
  7. Daniela Del Boca & Rocio Ribero, 2003. "Visitations and Transfers After Divorce," Review of Economics of the Household, Springer, vol. 1(3), pages 187-204, September.
  8. Del Boca, Daniela & Ribero, Rocio, 1998. "Transfers in non-intact households," Structural Change and Economic Dynamics, Elsevier, vol. 9(4), pages 469-478, December.
  9. 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.
  10. 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.
  11. David Madden, 1999. "The Kids are Alright? An Analysis of Child Benefit Using Irish Data," Working Papers 199926, School Of Economics, University College Dublin.
  12. 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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