Exit Costs in Marriage: Does the Laffer Curve Apply to Marriage Markets?

Abstract:     
The economics literature that deals with the exit costs of marriage has considered primarily the shift from mutual consent divorce to unilateral divorce and has not provided a larger, overall picture of the marriage market under various exit conditions. This paper proposes that a modified Laffer Curve model of marriage and divorce provides the best overall picture of the marriage market under various exit scenarios. Evidence for this model is obtained from various studies available in the literature.

Number of Pages in PDF File: 23

Keywords: Unilateral Divorce, Mutual Consent Divorce, Laffer Curve, Transaction Costs, Marriage Contract

JEL Classification: D13, D23, D86, J12, K12, K36

working papers series