IDEAS home Printed from https://ideas.repec.org/p/anc/wpaper/451.html
   My bibliography  Save this paper

To Divorce Or Not To Divorce: Is This A Property Tax Problem?

Author

Listed:
  • Raffaella Santolini

    (Dipartimento di Scienze Economiche e Sociali - Universita' Politecnica delle Marche)

Abstract

The decision to end a marriage may depend on economic reasons such as more advantageous tax breaks obtained through a divorce. The paper examines the role played by property tax in influencing decisions of marital separation and divorce in Italian municipalities over the years 2001-2007. Empirical analysis shows that there is a significant increase in divorces and marital separations as the difference between the municipal secondary and primary home tax rate increases. Women are more inclined than men to separate and divorce when the municipal property tax rates differences become larger.

Suggested Citation

  • Raffaella Santolini, 2021. "To Divorce Or Not To Divorce: Is This A Property Tax Problem?," Working Papers 451, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    • Handle: RePEc:anc:wpaper:451
    as

    Download full text from publisher

    File URL: http://docs.dises.univpm.it/web/quaderni/pdf/451.pdf
    File Function: First version, 2021
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marcus Eliason, 2012. "Lost jobs, broken marriages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1365-1397, October.
    2. Bracco, Emanuele & Lockwood, Ben & Porcelli, Francesco & Redoano, Michela, 2015. "Intergovernmental grants as signals and the alignment effect: Theory and evidence," Journal of Public Economics, Elsevier, vol. 123(C), pages 78-91.
    3. Liat Raz-Yurovich, 2012. "Economic Determinants of Divorce Among Dual-Earner Couples: Jews in Israel [Les déterminants économiques du divorce parmi les couples à double revenu : le cas des juifs en Israël]," European Journal of Population, Springer;European Association for Population Studies, vol. 28(2), pages 177-203, May.
    4. Kenneth Rogoff & Anne Sibert, 1988. "Elections and Macroeconomic Policy Cycles," Review of Economic Studies, Oxford University Press, vol. 55(1), pages 1-16.
    5. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    6. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    7. Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July.
    8. Bracco, Emanuele & Redoano, Michela & Porcelli, Francesco, 2012. "Incumbent Effects and Partisan Alignment in Local Elections: a Regression Discontinuity Analysis Using Italian Data," CAGE Online Working Paper Series 87, Competitive Advantage in the Global Economy (CAGE).
    9. Sjoquist, David L. & Walker, Mary Beth, 1995. "The Marriage Tax and the Rate and Timing of Marriage," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(4), pages 547-558, December.
    10. Hamid Baghestani & Michael Malcolm, 2014. "Marriage, divorce and economic activity in the US: 1960--2008," Applied Economics Letters, Taylor & Francis Journals, vol. 21(8), pages 528-532, May.
    11. Alm, James & Whittington, Leslie A., 1995. "Does the Income Tax Affect Marital Decisions?," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(4), pages 565-572, December.
    12. Raffaella Santolini, 2009. "Una verifica empirica del ciclo elettorale nelle scelte di politica fiscale dei governi locali marchigiani," PRISMA Economia - Societ? - Lavoro, FrancoAngeli Editore, vol. 2009(2), pages 97-108.
    13. Gary S. Becker, 1974. "A Theory of Marriage: Part II," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 11-26, National Bureau of Economic Research, Inc.
    14. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2007. "Enhanced routines for instrumental variables/generalized method of moments estimation and testing," Stata Journal, StataCorp LP, vol. 7(4), pages 465-506, December.
    15. Jensen, Peter & Smith, Nina, 1990. "Unemployment and Marital Dissolution," Journal of Population Economics, Springer;European Society for Population Economics, vol. 3(3), pages 215-229, October.
    16. Hector Chade & Gustavo Ventura, 2002. "Taxes and Marriage: A Two-Sided Search Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(3), pages 955-986, August.
    17. Hector Chade & Gustavo Ventura, 2005. "Income Taxation and Marital Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 8(3), pages 565-599, Juky.
    18. Alm, James & Whittington, Leslie A., 1995. "Does the Income Tax Affect Marital Decisions?," National Tax Journal, National Tax Association, vol. 48(4), pages 565-72, December.
    19. Bracco, Emanuele & Revelli, Federico, 2018. "Concurrent elections and political accountability: Evidence from Italian local elections," Journal of Economic Behavior & Organization, Elsevier, vol. 148(C), pages 135-149.
    20. Sjoquist, David L. & Walker, Mary Beth, 1995. "The Marriage Tax and the Rate and Timing of Marriage," National Tax Journal, National Tax Association, vol. 48(4), pages 547-58, December.
    21. Rogoff, Kenneth, 1990. "Equilibrium Political Budget Cycles," American Economic Review, American Economic Association, vol. 80(1), pages 21-36, March.
    22. Simone Pellegrino, 2007. "L?ici: una valutazione a un decennio dalla sua introduzione," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2007(5-6), pages 143-170.
    23. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-846, July-Aug..
    24. Alberto Alesina & Matteo Paradisi, 2017. "Political budget cycles: Evidence from Italian cities," Economics and Politics, Wiley Blackwell, vol. 29(2), pages 157-177, July.
    25. Gary S. Becker, 1974. "A Theory of Marriage," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 299-351, National Bureau of Economic Research, Inc.
    26. Jessamyn Schaller, 2013. "For richer, if not for poorer? Marriage and divorce over the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 1007-1033, July.
    27. Hellerstein, Judith K. & Morrill, Melinda Sandler & Zou, Ben, 2013. "Business cycles and divorce: Evidence from microdata," Economics Letters, Elsevier, vol. 118(1), pages 68-70.
    28. Becker, Gary S & Landes, Elisabeth M & Michael, Robert T, 1977. "An Economic Analysis of Marital Instability," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1141-1187, December.
    29. Leslie A. Whittington & James Alm, 1997. "'Til Death or Taxes Do Us Part: The Effect of Income Taxation on Divorce," Journal of Human Resources, University of Wisconsin Press, vol. 32(2), pages 388-412.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shannon Seitz, 2009. "Accounting for Racial Differences in Marriage and Employment," Journal of Labor Economics, University of Chicago Press, vol. 27(3), pages 385-437, July.
    2. Hector Chade & Gustavo Ventura, 2005. "Income Taxation and Marital Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 8(3), pages 565-599, Juky.
    3. Leturcq, Marion, 2012. "Will you civil union me? Taxation and civil unions in France," Journal of Public Economics, Elsevier, vol. 96(5), pages 541-552.
    4. Sheena Murray, 2017. "Urban Density and the Procyclicality of Divorce," Economics Bulletin, AccessEcon, vol. 37(1), pages 411-422.
    5. Rafael González-Val & Miriam Marcén, 2018. "Unemployment, marriage and divorce," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1495-1508, March.
    6. Dickert-Conlin, Stacy & Houser, Scott, 1998. "Taxes and Transfers: A New Look at the Marriage Penalty," National Tax Journal, National Tax Association;National Tax Journal, vol. 51(2), pages 175-217, June.
    7. Elliott Isaac, 2020. "Marriage, Divorce, and Social Safety Net Policy," Southern Economic Journal, John Wiley & Sons, vol. 86(4), pages 1576-1612, April.
    8. 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.
    9. Dickert-Conlin, Stacy & Houser, Scott, 1998. "Taxes and Transfers: A New Look at the Marriage Penalty," National Tax Journal, National Tax Association, vol. 51(n. 2), pages 175-217, June.
    10. Melissa Ruby Banzhaf, 2018. "When It Rains, It Pours: Under What Circumstances Does Job Loss Lead to Divorce," Southern Economic Journal, John Wiley & Sons, vol. 85(2), pages 349-377, October.
    11. Alexander Stimpfle & David Stadelmann, 2016. "Marriage Age Affects Educational Gender Inequality: International Evidence," CREMA Working Paper Series 2016-02, Center for Research in Economics, Management and the Arts (CREMA).
    12. Sigve Tjøtta & Kjell Vaage, 2008. "Public transfers and marital dissolution," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(2), pages 419-437, April.
    13. Alm, James & Whittington, Leslie A., 1997. "Income taxes and the timing of marital decisions," Journal of Public Economics, Elsevier, vol. 64(2), pages 219-240, May.
    14. Marcus Eliason, 2012. "Lost jobs, broken marriages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1365-1397, October.
    15. John Douglas Skåtun, 2017. "Bargaining on your Spouse: Coasean and Non-Coasean Behaviour Within Marriage," Journal of Family and Economic Issues, Springer, vol. 38(2), pages 263-278, June.
    16. Carina Keldenich & Christine Luecke, 2022. "Unlucky at work, unlucky in love: job loss and marital stability," Review of Economics of the Household, Springer, vol. 20(1), pages 243-278, March.
    17. Laurens Cherchye & Bram De Rock & Frederic Vermeulen & Selma Walther, 2021. "Where did it go wrong? Marriage and divorce in Malawi," Quantitative Economics, Econometric Society, vol. 12(2), pages 505-545, May.
    18. John M. Nunley & Alan Seals, 2010. "The Effects of Household Income Volatility on Divorce," American Journal of Economics and Sociology, Wiley Blackwell, vol. 69(3), pages 983-1010, July.
    19. Rafael González-Val & Miriam Marcén, 2017. "Divorce and the business cycle: a cross-country analysis," Review of Economics of the Household, Springer, vol. 15(3), pages 879-904, September.
    20. Janusz Kudła, 2002. "The Economic Aspects of Family Taxation," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 6.

    More about this item

    Keywords

    property tax; divorce; marital separation; Italian municipalities;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:anc:wpaper:451. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Maurizio Mariotti (email available below). General contact details of provider: https://edirc.repec.org/data/deancit.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.