This paper studies how the risk of divorce affects the human capital decisions of a young couple. We consider a setting … where complete specialization (one of the spouses uses up all the education resources) is optimal with no divorce risk … symmetric allocation will become more attractive as the probability of divorce increases, if risk aversion is high and/or labor …

of the word, the government’s agents. They are agents also in the sense of Principal-Agent theory if the parental action …

the legal costs of divorce, on the interrelationships among the decisions on marriage, fertility and divorce. …This paper applies the theory of relational contracts to a model in which a couple decides whether to marry or cohabit …

Neither marriage nor a legally enforceable contract serves any useful purpose if the parties have access to a perfect … enforceable contract. Separate-property marriage may reduce and community-property marriage actually eliminate inefficiency, but …