An Equilibrium Analysis of Marriage, Divorce and Risk-Sharing
This paper considers family formation and reciprocity-based cooperation in the form of sharing of earnings-risk. While risk sharing is one benefit to marriage it is also limited by divorce risk. With search in the marriage market there may be multiple equilibria diering not only in divorce rates but also in the role of marriage in providing informal insurance. Publicly provided insurance, despite potential equilibrium multiplicity, is shown to aect family formation and financial cooperation monotonically. Some aspects of the model are then tested using international survey data and a bivariate probit model with sample selection.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mark Rosenzweig & Andrew D. Foster, 1995.
"Imperfect Commitment, Altruism, and the Family: Evidence from Transfer Behavior in Low-Income Rural Areas,"
_075, University of Pennsylvania.
- Andrew D. Foster & Mark R. Rosenzweig, 2001. "Imperfect Commitment, Altruism, And The Family: Evidence From Transfer Behavior In Low-Income Rural Areas," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 389-407, August.
- Attanasio, Orazio & Rios-Rull, Jose-Victor, 2000. "Consumption smoothing in island economies: Can public insurance reduce welfare?," European Economic Review, Elsevier, vol. 44(7), pages 1225-1258, June.
- 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 1141-87, December.
- Aiyagari, S.R. & Greenwood, J. & Guner, N., 1999.
"On the State of the Union,"
RCER Working Papers
462, University of Rochester - Center for Economic Research (RCER).
- Ethan Ligon & Jonathan P. Thomas & Tim Worrall, 2000.
"Mutual Insurance, Individual Savings and Limited Commitment,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 3(2), pages 216-246, April.
- Ethan Ligon & Jonathan P. Thomas & Tim Worrall, 1998. "Mutual Insurance, Individual Savings and Limited Commitment," Keele Department of Economics Discussion Papers (1995-2001) 98/14, Department of Economics, Keele University.
- Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug..
- Arnstein Aassve & Simon Burgess & Andrew Chesher & Carol Propper, 2001.
"Transitions from home to marriage of young Americans,"
MPIDR Working Papers
WP-2001-004, Max Planck Institute for Demographic Research, Rostock, Germany.
- Arnstein Aassve & Simon Burgess & Andrew Chesher & Carol Propper, 2002. "Transitions from home to marriage of young Americans," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(1), pages 1-23.
- Cullen, Julie Berry & Gruber, Jonathan, 2000. "Does Unemployment Insurance Crowd Out Spousal Labor Supply?," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 546-72, July.
- Coate, S. & Ravallion, M., 1989. "Reciprocity Without Commitment: Characterization and Performance of Informal Risk-Sharing Arrangements," Papers 96, Warwick - Development Economics Research Centre.
- Weiss, Yoram & Willis, Robert J, 1997.
"Match Quality, New Information, and Marital Dissolution,"
Journal of Labor Economics,
University of Chicago Press, vol. 15(1), pages S293-329, January.
- Weiss, Y. & Willis, R.J., 1995. "Match Quality, New Information and Marital Dissolution," Papers 33-95, Tel Aviv - the Sackler Institute of Economic Studies.
- Yoram Weiss & Robert J. Willis, . "Match Quality, New Information and Marital Dissolution," University of Chicago - Population Research Center 95-13, Chicago - Population Research Center.
- Weiss, Y., 1992.
"The Formation and Dissolution of Families: Why Marry? Who Marries Whom ? and What Happens Upon Marriage and Divorce,"
University of Chicago - Economics Research Center
92-7, Chicago - Economics Research Center.
- Yoram Weiss, . "The Formation and Dissolution of Families: Why Marry? Who Marries Whom? And What Happens Upon Marriage and Divorce," University of Chicago - Population Research Center 92-7a, Chicago - Population Research Center.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_555. 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: (Klaus Wohlrabe)
If references are entirely missing, you can add them using this form.