Political Risk and Capital Flight
AbstractThe Rule of One-Third guaranteed wives one-third of their husband's estate upon marital dissolution through death or divorce. We document the historical ubiquity of this legal construct and show that without a wife's residual claim on her husband's estate, children's outcomes are imperiled. Using ancient Roman law as an example, we argue that the patriarch, or paterfamilias is the main legal entity with an interest in creating and enforcing the Rule of One-Third. Then, in a game-theoretic model, we demonstrate that the Rule of One-Third obtains when mothers' and fathers' marginal impacts on their children's human capital are equal. We conclude that the Rule of One-Third arose in many societies because it places the cost of marital dissolution on the household rather than society and solves a complex contracting problem between the husband and wife when each is specialized in tasks the other cannot perform well.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Claremont Colleges in its series Claremont Colleges Working Papers with number 2000-24.
Date of creation:
Date of revision:
Contact details of provider:
Postal: 500 E. 9th Street, Claremont, CA 91711
Phone: (909) 607-3041
Fax: (909) 621-8249
Web page: http://www.claremontmckenna.edu/rdschool/papers/
More information through EDIRC
marriage; divorce; human capital; institutions;
Find related papers by JEL classification:
- J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
- K00 - Law and Economics - - General - - - General (including Data Sources and Description)
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.