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Marriage, Divorce and Reciprocity-based Cooperation

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  • Dan Anderberg

Abstract

This paper considers partnership formation, partnership dissolution and reciprocity-based cooperation by couples in the form of voluntary transfers to smooth consumption. While risk sharing is one benefit of having a partner, it is also limited by the (endogenous) risk of separation. The equilibrium formation and dissolution of partnerships are determined simultaneously with cooperative behavior. Publicly provided earnings insurance is shown to increase the "turnover" rate in the marriage market as well as to reduce the steady-state marriage rate and the implicit financial cooperation between partners. Copyright The editors of the "Scandinavian Journal of Economics" 2007 .

Suggested Citation

  • Dan Anderberg, 2007. "Marriage, Divorce and Reciprocity-based Cooperation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(1), pages 25-47, March.
  • Handle: RePEc:bla:scandj:v:109:y:2007:i:1:p:25-47
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    References listed on IDEAS

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    1. Robert Moffitt, 1994. "Welfare Effects on Female Headship with Area Effects," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 621-636.
    2. Robert F. Schoeni & Rebecca M. Blank, 2000. "What has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," NBER Working Papers 7627, National Bureau of Economic Research, Inc.
    3. Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes, 2002. "The Impact of Welfare Reform on Living Arrangements," NBER Working Papers 8784, National Bureau of Economic Research, Inc.
    4. Diamond, Peter A, 1982. "Aggregate Demand Management in Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 881-894, October.
    5. Schoeni, R.F. & Blank, R.M., 2000. "What Has Welfare Reform Accomplished? Impacts on Welfare Participation, Employment, Income, Poverty, and Family Structure," Papers 00-02, RAND - Labor and Population Program.
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    Cited by:

    1. Martin Halla & Johann Scharler, 2012. "Marriage, Divorce, and Interstate Risk Sharing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(1), pages 55-78, March.
    2. Balestrino, Alessandro & Ciardi, Cinzia & Mammini, Claudio, 2013. "On the causes and consequences of divorce," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 1-9.
    3. Martin Halla & Mario Lackner & Johann Scharler, 2016. "Does the Welfare State Destroy the Family? Evidence from OECD Member Countries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(2), pages 292-323, April.
    4. Anne-Kathrin Bronsert & Amihai Glazer & Kai A. Konrad, 2017. "Old money, the nouveaux riches and Brunhilde’s marriage strategy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 163-186, January.
    5. repec:oup:cesifo:v:62:y:2016:i:4:p:699-724. is not listed on IDEAS

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