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Does Divorce Law Matter?

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In this paper we derive an explicit model of negotiations between spouses when utility is (partially) transferable 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.

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Marco Mariotti, Paola Manzini, Giulio Fella

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Adapt according to the presented license agreement and reference the original author.