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Bargaining at divorce: The allocation of custody

We model the bargaining process of parents over custody at the time of divorce. First we assume an institutional setting where only sole custody is available. In a second step we reform this institutional setting and introduce the possibility of joint custody. We show that some parents, who would not be able to find an agreement in a sole custody regime, can find an agreement after the joint custody reform. Accordingly, our empirical analysis shows that the introduction of joint custody enables more parents to divorce by mutual consent.

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File URL: http://www.econ.jku.at/papers/2006/wp0618.pdf
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Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2006-18.

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Date of creation: Sep 2006
Date of revision: Jan 2007
Handle: RePEc:jku:econwp:2006_18
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Web page: http://www.econ.jku.at/

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  1. Francesconi, Marco & Muthoo, Abhinay, 2003. "An economic model of child custody," ISER Working Paper Series 2003-22, Institute for Social and Economic Research.
  2. Helmut Rainer, 2005. "Should We Write Prenuptial Contracts?," Discussion Paper Series, Department of Economics 200514, Department of Economics, University of St. Andrews.
  3. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
  4. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2.
  5. Giulio Fella & Paola Manzini & Marco Mariotti, 2004. "Does Divorce Law Matter?," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 607-633, 06.
  6. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers 185, Massachusetts Institute of Technology (MIT), Department of Economics.
  7. Imran Rasul, 2006. "The Economics of Child Custody," Economica, London School of Economics and Political Science, vol. 73(289), pages 1-25, 02.
  8. J. A. Hausman & D. A. Wise, 1976. "A Conditional Profit Model for Qualitative Choice: Discrete Decisions Recognizing Interdependence and Heterogeneous Preferences," Working papers 173, Massachusetts Institute of Technology (MIT), Department of Economics.
  9. Del Boca, Daniela & Ribero, Rocio, 1998. "Transfers in non-intact households," Structural Change and Economic Dynamics, Elsevier, vol. 9(4), pages 469-478, December.
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