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Divorce and the cost of housing: evidence from Iran

Author

Listed:
  • Mohammad Reza Farzanegan

    () (Philipps-University of Marburg
    CESifo
    Marburg Centre for Institutional Economics (MACIE)
    ERF)

  • Hassan Fereidouni Gholipour

    () (Swinburne University of Technology)

Abstract

Abstract Divorce trend in Iran has become a serious social concern that is suspected of being influenced by rising housing costs in an oil-based economy. Iran has the highest growth rate of divorce among Islamic countries in the Middle East and North Africa region. Using data from 30 provinces of Iran from 2002 to 2010, this paper examines the relationship between housing costs (house prices and rents) and divorce rate, controlling for other macroeconomic variables such as unemployment, inflation, and education in addition to regional, cultural, traditional, and conventional attitudes toward divorce. By applying panel fixed-effects and dynamic generalized methods of moments methods, our results suggest that increases in housing costs erode marital stability in Iran. Our main results are also supported when we focus on the shocks in housing costs, using the Vector autoregressive based impulse response and variance decomposition analyses of divorce rates at the national level from 1982 to 2010.

Suggested Citation

  • Mohammad Reza Farzanegan & Hassan Fereidouni Gholipour, 2016. "Divorce and the cost of housing: evidence from Iran," Review of Economics of the Household, Springer, vol. 14(4), pages 1029-1054, December.
  • Handle: RePEc:kap:reveho:v:14:y:2016:i:4:d:10.1007_s11150-014-9279-0
    DOI: 10.1007/s11150-014-9279-0
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Reza Farzanegan & Hassan F. Gholipour, 2018. "Divorce and Gold Coins: A Case Study of Iran," CESifo Working Paper Series 6873, CESifo Group Munich.
    2. Kjetil Bjorvatn & Mohammad Reza Farzanegan, 2015. "Natural-Resource Rents and Political Stability in the Middle East and North Africa," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(3), pages 33-37, October.
    3. repec:ces:ifodic:v:13:y:2015:i:3:p:19173861 is not listed on IDEAS

    More about this item

    Keywords

    Housing costs; Divorce; Dynamic panel data; VAR; Impulse response; Iran;

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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