Konrad, Kai A.; Lommerud, Kjell Erik - C.E.P.R. Discussion Papers - 2008
We study a setting with search frictions in the marriage market and with incomplete contracting inside the family …, because he may dislike the implicit income redistribution implied by marriage. Redistributive income taxation may ease this … substitute for redistribution, so that optimal redistribution is reduced. We also introduce a divorce option. Redistributive …