The Economics of Child Custody

@article{Rasul2006TheEO,
  title={The Economics of Child Custody},
  author={Imran Rasul},
  journal={Organizations \& Markets eJournal},
  year={2006}
}
  • Imran Rasul
  • Published 1 February 2006
  • Economics
  • Organizations & Markets eJournal
I develop a model of marriage in which spouses decide on investments in child quality during marriage, and on the allocation of child custody should they divorce. The custodial allocation determines the share of the marital surplus each spouse appropriates, which in turn influences spouses' investment incentives. The custodial allocation therefore has both distributional and efficiency consequences. I derive the equilibrium investments and optimal custodial allocation, and identify three… 
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