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An Equilibrium Analysis of Marriage, Divorce and Risk-Sharing

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  • Anderberg, Dan

    (University of Stirling)

Abstract

This paper considers marriage, divorce and reciprocity-based cooperation by couples in the form of sharing of earnings-risk. While risk sharing is one benefit to marriage it is also limited by divorce risk. With search in the marriage market there may be multiple equilibria differing not only in family formation and dissolution patterns but also in the role of marriage in providing informal insurance. Publicly provided earnings-insurance, despite potential equilibrium multiplicity, is shown to affect family formation and financial cooperation monotonically.

Suggested Citation

  • Anderberg, Dan, 2002. "An Equilibrium Analysis of Marriage, Divorce and Risk-Sharing," Royal Economic Society Annual Conference 2002 6, Royal Economic Society.
    • Handle: RePEc:ecj:ac2002:6
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    Cited by:

    1. Kai A. Konrad & Kjell Erik Lommerud, 2010. "Love and taxes - and matching institutions," Canadian Journal of Economics, Canadian Economics Association, vol. 43(3), pages 919-940, August.
    2. Katarina Nordblom, 2004. "Cohabitation and Marriage in a Risky World," Review of Economics of the Household, Springer, vol. 2(3), pages 325-340, April.

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