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Does Divorce Law Matter?

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  • Giulio Fella

    ()
    (Queen Mary, University of London)

  • Paola Manzini

    (Queen Mary, University of London)

  • Marco Mariotti

    (University of Exeter)

Abstract

In this paper we derive an explicit model of negotiations between spouses when utility is (partially) transferable only in case of separation. We show that inefficient separation may occur in equilibrium even under consensual divorce law. This provides theoretical support for the view that changes in social norms rather than in legislation may be responsible for increasing divorce rates.

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Paper provided by Queen Mary, University of London, School of Economics and Finance in its series Working Papers with number 454.

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Date of creation: Mar 2002
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Handle: RePEc:qmw:qmwecw:wp454

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Keywords: Bargaining; Divorce; Non transferability;

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