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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. Linda Welling & Marci Bearance, 2001. "Who's Minding the Kids? An Economic Comparison of Sole and Joint Custody," Department Discussion Papers 0101, Department of Economics, University of Victoria.
  2. Daniela del Boca & Rocio Ribero, 1999. "Visitations And Transfers In Non-Intact Househols," CHILD Working Papers wp09_00, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  3. Del Boca, Daniela, 2002. "Mothers, Fathers and Children after Divorce: The Role of Institutions," IZA Discussion Papers 428, Institute for the Study of Labor (IZA).
  4. Del Boca, Daniela & Ribero, Rocio, 1998. "Transfers in non-intact households," Structural Change and Economic Dynamics, Elsevier, vol. 9(4), pages 469-478, December.
  5. Marie-Louise Leroux & Grégory Ponthière, 2013. "Optimal prevention when coexistence matters," Journal of Population Economics, Springer, vol. 26(3), pages 1095-1127, July.
  6. 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.
  7. Felső, Flóra Á & Soetevent, Adriaan R., 2014. "Broad and narrow bracketing in gift certificate spending," European Economic Review, Elsevier, vol. 66(C), pages 284-302.
  8. Peter Kooreman, 2000. "The Labeling Effect of a Child Benefit System," American Economic Review, American Economic Association, vol. 90(3), pages 571-583, June.
  9. David Madden, 1999. "The Kids are Alright? An Analysis of Child Benefit Using Irish Data," Working Papers 199926, School Of Economics, University College Dublin.
  10. 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.
  11. Christine Hauser, 2008. "Child Support Enforcement and Children's Consumption," 2008 Meeting Papers 630, Society for Economic Dynamics.
  12. 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.
  13. 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.
  14. 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.
  15. Runnemark, Emma & Hedman, Jonas & Xiao, Xiao, 2014. "Do Consumers Pay More Using Debit Cards than Cash? An Experiment," Working Papers 2014:21, Lund University, Department of Economics.
  16. World Bank, 2011. "Work and Family : Latin American and Caribbean Women in Search of a New Balance," World Bank Other Operational Studies 12489, The World Bank.

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