We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
MARRIAGE, MARKETS, AND MONEY: A COASIAN THEORY OF HOUSEHOLD FORMATION.
- Authors
Burdett, Kenneth; Dong, Mei; Sun, Ling; Wright, Randall
- Abstract
This article integrates search-based models of marriage and money. We think about households as organizations, the way Coase thinks about firms, as alternatives to markets that become more attractive when transactions costs increase. In the model, individuals consume market- and home-produced goods, and home production is facilitated by marriage. Market frictions, including taxes, search, and bargaining problems, increase the marriage propensity. The inflation tax encourages marriage because being single is cash intensive. Microdata confirm singles use cash more than married people. We use macrodata over many countries to investigate how marriage responds to inflation, taxation, and other variables.
- Subjects
MARITAL statistics; MARITAL adjustment; TAXATION; MARRIED people; MARITAL relations
- Publication
International Economic Review, 2016, Vol 57, Issue 2, p337
- ISSN
0020-6598
- Publication type
Article
- DOI
10.1111/iere.12160