IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Marital instability and business start-up rates

Listed author(s):
  • S. Cameron

Inspired by the work of Becker, economists have produced a voluminous literature on divorce. This is almost completely devoid of any reference to macroeconomic effects. The bulk of it examines the determinants of separation. This paper explores one such macroeconomic effect; the impact of divorce on small business start-ups. The route through which it exerts this influence is the housing market. Housing is an important component of wealth for the majority of households. Divorce can have a dramatic impact on the value of investment in housing available to an individual (see Davis et al., 1992); for example, an individual may be nominally the owner of a house yet be forced, by the courts, to relinquish it for a former partner. This is a sharp change in wealth holdings which must surely influence major capital commitments. Given recent work on consumer durables and housing (Carruth and Henley, 1992) one might expect divorce to impact on durable spending, but this important aspect to aggregate demand has not been investigated. Nor has the influence on aggregate supply through its effect on the formation of new firms been examined. There is thus considerable scope for analysis of the impact of divorce on aggregate demand and supply. This paper focuses exclusively on the latter. It adapts some models from the emerging literature on the formation of new firms and applies these to data at county level for England and Wales. The estimated equations indicate that divorce has a negative and significant impact on the rate of small business start-ups.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/758532604&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 4 (1997)
Issue (Month): 5 ()
Pages: 333-335

as
in new window

Handle: RePEc:taf:apeclt:v:4:y:1997:i:5:p:333-335
DOI: 10.1080/758532604
Contact details of provider: Web page: http://www.tandfonline.com/RAEL20

Order Information: Web: http://www.tandfonline.com/pricing/journal/RAEL20

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:4:y:1997:i:5:p:333-335. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.