Cohabitation and Marriage in a Risky World

  title={Cohabitation and Marriage in a Risky World},
  author={Katarina Nordblom},
  • Katarina Nordblom
  • Published 2003
Cohabiting and married couples are analysed in presence of income uncertainty and precautionary saving. Married couples have legal constraints on their relationship that force them to act cooperatively, while cohabitants are likely to act non-cooperatively. This makes risk sharing different for different couples; cohabitants share risk to a lesser extent than do married couples, and their savings decision is further distorted by strategic undersaving. The conclusion is therefore a kind of… CONTINUE READING

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