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Marriage, Divorce, and Interstate Risk Sharing

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  • Martin Halla
  • Johann Scharler

Abstract

In this paper we study the importance of marriage for interstate risk sharing. We find that US states in which married couples account for a higher share of the population are less exposed to state-specific output shocks. Thus, marriages do not just improve the allocation of risk at the individual level, but also have implications for the allocation of risk at the more aggregated state-level. Quantitatively, the impact of marriage on interstate risk sharing varies over divorce regimes.
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  • Martin Halla & Johann Scharler, 2012. "Marriage, Divorce, and Interstate Risk Sharing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(1), pages 55-78, March.
    • Handle: RePEc:bla:scandj:v:114:y:2012:i:1:p:55-78
    DOI: j.1467-9442.2011.01673.x
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    Cited by:

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    2. Donni, Olivier, 2014. "Over-investment in marriage-specific capital," Mathematical Social Sciences, Elsevier, vol. 67(C), pages 34-43.
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    5. Mizuki Komura & Hikaru Ogawa, 2022. "COVID-19, marriage, and divorce in Japan," Review of Economics of the Household, Springer, vol. 20(3), pages 831-853, September.

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    More about this item

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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