Abstract
In this paper we derive an explicit model of negotiations between spouses when unconstrained transfers are possible only in case of separation. We show that inefficient separation may occur in equilibrium even under consensual divorce law. This provides theoretical support for the view that changes in social norms rather than in legislation may be responsible for increasing divorce rates.
| Original language | English |
|---|---|
| Pages (from-to) | 607-633 |
| Number of pages | 27 |
| Journal | Journal of the European Economic Association |
| Volume | 2 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - Jun 2004 |
Bibliographical note
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