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“Economic Theory’s Stance On No-Fault Divorce”

  • Stéphane Mechoulan

    ()

This article explores key insights that economic theory can shed on the issue of no-fault divorce in the United States, addressing modifications in the incentive structure of individuals that resulted from the legislative reforms of the 1970s. After stressing the importance of correctly interpreting and classifying divorce laws, this work investigates the contributions of the theory of property rights, the contributions of game theory and intra-household bargaining, and the contributions of general equilibrium analysis in our understanding of how divorce laws work and what their impact is. By doing so, this exposé analyzes the theoretical consequences of no-fault divorce on the decision whether to get married or divorced, on the characteristics of spouses and divorcees, on divorce rates, and on marital-specific and non marital-specific investments. Copyright Springer Science+Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s11150-005-3461-3
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Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 3 (2005)
Issue (Month): 3 (09)
Pages: 337-359

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Handle: RePEc:kap:reveho:v:3:y:2005:i:3:p:337-359
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=109451

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  1. Justin Wolfers, 2003. "Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results," NBER Working Papers 10014, National Bureau of Economic Research, Inc.
  2. Niko Matouschek & Imran Rasul, 2008. "The Economics of the Marriage Contract: Theories and Evidence," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 59-110, 02.
  3. Betsey Stevenson, 2006. "The impact of divorce laws on marriage-specific capital," Working Paper Series 2006-43, Federal Reserve Bank of San Francisco.
  4. Jonathan Gruber, 2000. "Is Making Divorce Easier Bad for Children? The Long Run Implications of Unilateral Divorce," NBER Working Papers 7968, National Bureau of Economic Research, Inc.
  5. Plamen Nikolov & Karen Gardiner & Mike Fishman, 2003. "State Policies to promote marriage," HEW 0306003, EconWPA.
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