Baker, Matthew J.; Jacobsen, Joyce P. - In: Journal of Law, Economics and Organization 23 (2007) 1, pp. 208-241
In premodern societies, the residence of a newly wedded couple is often decided by custom. We formulate a theory of optimal postmarital residence rules based on contracting problems created by the nature of premarriage human capital investments. We argue that a fixed postmarital residence rule...