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Divorce and Gold Coins: A Case Study of Iran

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  • Mohammad Reza Farzanegan
  • Hassan F. Gholipour

Abstract

The increasing divorce rate has become a major social concern for policy makers in the Islamic government of Iran. The price of gold coin is an important factor in cost-benefit analysis for individuals in their marriage and divorce decisions in Iran. Dowries (Mehrieh) are usually in the form of gold coin and a wife has a legal right to them upon both parties signing the marriage contract. Increasing the price of gold coin may intensify the internal stress and struggles within families, leading to a higher probability of divorce. We investigate the long-run relationship between real price of gold coin and divorce rate for the case of Iran over the period 1980-2014. Controlling for other factors, our regression results show that there is a positive and significant long-run relationship between real price of gold coin (as well as unanticipated changes in real price of gold coin) and marital instability.

Suggested Citation

  • Mohammad Reza Farzanegan & Hassan F. Gholipour, 2018. "Divorce and Gold Coins: A Case Study of Iran," CESifo Working Paper Series 6873, CESifo.
    • Handle: RePEc:ces:ceswps:_6873
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    More about this item

    Keywords

    divorce; gold price; cointegration regression; Iran;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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