Taxes, divorce-transactions costs, economic conditions, and divorce rates: an exploratory empirical inquiry for the United States

Cebula, R.J.; Belton, W.J.

Public Finance 50(3): 342-355

1995


ISSN/ISBN: 0033-3476
PMID: 12178367
Document Number: 308820
"This study argues that, given the tax deductibility of alimony payments in the United States, higher marginal federal income tax rates may reduce the expected transactions costs of divorce and act thereby to increase the divorce rate. After allowing for a variety of other factors, including inflation, female labor force participation, AIDS, the Vietnam War, age, the availability of legal assistance, and transfer payments, both first-differences estimates and Granger-causality tests strongly support the hypothesis."

Document emailed within 1 workday
Secure & encrypted payments