does microfinance reduce rural poverty evidence based on household panel data from northern ethiopia evidence on the long term impacts of microfinance credit is scarce we use a unique four round panel dataset on farm households in northern ethiopia that had access to microfinance observed on two key poverty indicators household consumption and housing improvements fixed effects and random trend models are used to reduce potential selection biases due to time invariant unobserved heterogeneity and individual trends therein results show that borrowing indeed causally increased consumption and housing improvements a flexible specification that takes into account repeated borrowings also suggests that borrowing has cumulative long term effects on these outcomes implying that short term impact estimates may underestimate credit effects

marriage and other risky assets a portfolio approach we study the joint impact of gender and marital status on financial decisions first we test the hypothesis that marriage represents in a portfolio framework a sort of safe asset and that this effect is stronger for women controlling for a number of observable characteristics we show that single women have a lower propensity to invest in risky assets than married females and males second we show that the differential behavior of single women evolves over time reflecting the increasing incidence of divorce and the expansion of female labor market participation in particular towards the end of our sample period we observe a reduction in the gap between women with different family status which can be attributed to the gradual erosion of the perception of marriage as a sort of safe asset our results therefore suggest that the differential behavior of single vs married women can be explained by the evolution of gender roles in society even after controlling for differential risk attitudes our empirical investigation is based on a dataset drawn from the 1989 2006 bank of italy survey of household income and wealth

optimal monetary policy in a currency area abstract this paper investigates how monetary policy should be conducted in a two region general equilibrium model with monopolistic competition and price stickiness this framework delivers a simple welfare criterion based on the utility of the consumers that can be used to evaluate monetary policy in a currency area if the two regions share the same degree of nominal rigidity the terms of trade are completely insulated from monetary policy and the optimal outcome is obtained by targeting a weighted average of the regional inflation rates these weights coincide with the economic sizes of the region if the degrees of rigidity are different the optimal plan implies a high degree of inertia in the inflation rate but an inflation targeting policy in which higher weight is given to the inflation in the region with higher degree of nominal rigidity is nearly optimal

price stability in open economies this paper studies the conditions under which price stability is the optimal policy in a two country open economy model with imperfect competition and price stickiness special conditions on the levels of country specific distortionary taxation and the intratemporal and intertemporal elasticities of substitution need to be satisfied these restrictions apply to both cooperative and non cooperative settings most importantly we show that cooperative and non cooperative solutions do not coincide despite market completeness and producer currency pricing in this framework our analysis suggests a role for international policy coordination

for better or forever formal versus informal enforcement this article contrasts supporting partnerships through relational contracting and supporting partnerships through formal legal institutions a large population of players interact in bilateral relationships efficiency requires cooperation but cheating yields a higher short term payoff there is a positive probability that the maximum feasible payoff available to a partnership decreases opportunistic behavior makes it impossible to realize the efficient outcome a legal system can lead to efficient contracting without such a system productive relationships arise in equilibrium if it is costly to initiate new relationships this type of relational contracting tends to make partnerships last longer than is efficient

optimal monetary policy in open versus closed economies an integrated approach in clarida et al 1999 hereafter cgg we presented a normative analysis of monetary policy within a simple optimization based closedeconomy framework we derived the optimal policy rule and among other things characterized the gains from commitment also we made precise the implications for the kind of instrument feedback rule that a central bank should follow in practice in this paper we show how our analysis extends to the case of a small open economy openness complicates the problem of monetary management to the extent the central bank must take into account the impact of the exchange rate on real activity and inflation how to factor the exchange rate into the overall design of monetary policy accordingly becomes a central consideration here we show that under certain conditions the monetary policy design problem for the small open economy is isomorphic to the problem of the closed economy that we considered earlier hence all our qualitative results for the closed economy carry over to this case openness does affect the parameters of the model suggesting quantitative implications though the general form of the optimal interest rate feedback rule remains the same as in the closedeconomy case for example how aggressively a central bank should adjust the interest rate in response to inflationary pressures depends on the degree of openness in addition openness gives rise to an important distinction between domestic inflation and consumer price inflation as defined by the cpi to the extent that there is perfect exchange rate pass through we find that the central bank should target domestic inflation and allow the exchange rate to float despite the impact of the resulting exchangerate variability on the cpi kosuki aoki 1999 gali and tommaso monacelli 2000

the impact of divorce laws on marriage specific capital this article considers how divorce law alters the incentives for couples to invest in their marriage focusing on the impact of unilateral divorce laws on investments in new marriages differences across states between 1970 and 1980 provide useful quasi experimental variation with which to consider incentives to invest in several types of marriagespecific capital spouse s education children household specialization and home ownership i find that adoption of unilateral divorce regardless of the prevailing property division laws reduces investment in all types of marriage specific capital considered except home ownership in contrast results for home ownership depend on the underlying property division laws

new directions for stochastic open economy models the paper develops a simple stochastic new open economy macroeconomic model based on sticky nominal wages explicit solution of the wage setting problem under uncertainty allows one to analyze the effects of the monetary regime on welfare expected output and the expected terms of trade despite the potential interplay between imperfections due to sticky wages and monopoly the optimal monetary policy rule has a closed form solution to motivate our model we show that observed correlations between terms of trade and exchange rates are more consistent with our traditional assumptions about nominal rigidities than with a popular alternative based on local currency pricing 2000 elsevier science b v all rights reserved

domestic violence and divorce law when divorce threats become credible the cost of divorce influences the bargaining position of spouses and thus their behavior within the marriage this study takes advantage of a major and unexpected reduction in divorce costs in spain to estimate the causal effects on domestic violence results suggest a 30 decline in spousal conflict as a consequence of the reform spousal violence is found to have decreased among couples who remained married after the modification in the law which suggests an important role for changes in bargaining within the marriage when divorce becomes a more credible cheaper option

bargaining in the shadow of the law divorce laws and family distress this paper exploits the variation occurring from the different timing of divorce law reforms across the united states to evaluate how unilateral divorce changed family violence and whether the option provided by unilateral divorce reduced suicide and spousal homicide unilateral divorce both potentially increases the likelihood that a domestic violence relationship ends and acts to transfer bargaining power toward the abused thereby potentially stopping the abuse in extant relationships in states that introduced unilateral divorce we find a 8 16 percent decline in female suicide roughly a 30 percent decline in domestic violence for both men and women and a 10 percent decline in females murdered by their partners

overturning mundell fiscal policy in a monetary union central to ongoing debates over the desirability of monetary unions is a supposed trade off outlined by mundell 1961 a monetary union reduces transactions costs but renders stabilization policy less effective if shocks across countries are sufficiently correlated then according to this argument delegating monetary policy to a single central bank is not very costly and a monetary union is desirable this paper explores this argument in a setting with both monetary and fiscal policies in an economy with monetary policy alone we confirm the presence of the trade off and find that indeed a monetary union will not be welfare improving if the correlation of national shocks is too low however fiscal interventions by national governments combined with a central bank that has the ability to commit to monetary policy overturn these results in equilibrium such a monetary union will be welfare improving for any correlation of shocks

the new open economy macroeconomics of government debt in this paper we introduce an overlapping generations structure of the blanchard type in a new open economy macroeconomics model this allows us to study a wider range ofscal shocks compared to the traditional mundell fleming and to the baseline redux models one important policy implication of our model is that the tax cut imple mented in the us in 2001 might have contributed to the appreciation of the dollar vis a vis the euro in contrast the imposition ofscal constraint such as the golden rule proposed by the uk government can have opposite exchange rate e ects

the impact of conditional cash transfers on marriage and divorce abstracta growing number of less developed countries have introduced conditional cash transfer programs in which funds are targeted to women economic models of the family suggest that these transfer programs may lead to marital turnover among program beneficiaries data from the experimental evaluation of the progresa program in mexico is used to provide new evidence on the short run impacts of targeted transfers on couples union dissolution and individuals new union formation decisions we find that although the overall share of women in union does not change as a result of the program marital turnover increases intact families eligible for the transfers experienced a modest 0 32 percentage points increase in separation rates with most of the effect concentrated among young and relatively educated women households in contrast young single women with low educational attainment levels experienced a substantial increase in new union formation rates the marital transition patterns are consistent

global implications of self oriented national monetary rules author s obstfeld maurice rogoff kenneth abstract it is well known that if international linkages are relatively small the potential gains to international monetary policy coordination are typically quite limited but what if goods and financial markets are tightly linked is it then problematic if countries unilaterally design their institutions for monetary stabilization are the stabilization gains from having separate currencies largely squandered in the absence of effective international monetary coordination we argue that under plausible assumptions the answer is no unless risk aversion is very high lack of coordination in rule setting is a second order problem compared to the overall gains from monetary policy stabilization

marital investments time consistency and emotions abstract a benchmark model of a married couple s educational investment yields an inefficient outcome due to the possibility of opportunistic divorce motivated by findings in social psychology i use psychological game theory to incorporate belief dependent guilt feelings multiple equilibria become possible some marriages have inefficient under investment some have efficient outcomes and preclude divorce if guilt is sufficiently important a life long efficient marriage is implied because a spouse may signal a trust so strong as to force the partner to hold beliefs that make divorce unattractive

does the welfare state destroy the family evidence from oecd member countries we study the effect of the size of the welfare state on family outcomes in oecd member countries exploiting exogenous variation in public social spending due to varying degrees of political fractionalization i e the number of relevant parties involved in the legislative process we show that an expansion in the welfare state increases the fertility marriage and divorce rates with a quantitatively stronger effect on the marriage rate we conclude that the welfare state supports family formation nevertheless we also find that the welfare state decouples marriage and fertility and therefore alters the organization of the family authors abstract

fiscal stabilization with partial exchange rate pass through this paper examines the role of fiscal stabilization policy in a two country framework that allows for a general degree of exchange rate pass through i derive analytical solutions for optimal monetary and fiscal policy which are shown to depend on the degree of passthrough in the case of partial pass through an optimizing policy maker uses counter cyclical fiscal stabilization in addition to monetary stabilization however in the extreme cases of complete or zero pass through the fiscal stabilization instrument is not employed there is also no additional gain from the fiscal instrument in the case of coordination between the two countries these results are due to the specific way the optimal fiscal policy rule affects marginal costs rather than being a substitute for monetary policy fiscal policy complements it by increasing the correlation of the marginal cost terms within and across countries this in turn makes monetary policy more effective at stabilizing them

marriage and trust some lessons from economics this paper examines the role of marriage as an institution for providing couples with the confidence to make long term investments in their relationship no fault divorce has undermined the notion of marriage as a contract thereby reducing the security offered by marriage and promoting opportunism by men this has weakened the bargaining power of wives both within marriage and when divorce occurs current legal reforms will improve the economic position of all divorced wives including those who are primarily responsible for the breakdown of their marriage the latter feature will encourage opportunism by women and make men less prepared to invest in their marriage the paper argues that the only way to achieve parity between men and women and deter opportunism by either sex is to return to fault based divorce both divorce settlements and the custody of children should depend on preceding marital conduct

did unilateral divorce raise divorce rates evidence from panel data since early 1996 at least eight states have begun to consider rolling back unilateral and no fault divorce a major reversal of the liberalizing trend in divorce laws which began around 1970 the proponents of tightening the divorce regime often argue that making divorce more difficult will strengthen families however both theoretical and empirical evidence is decidedly mixed over whether the no fault revolution actually contributed to the sharp increase in divorce rates in the united states observed over the last 30 years in this paper i address the dispute by using a panel of state level divorce rates including state specific trends allows unobserved state divorce propensities to trend linearly and even quadratically over time and reveals that unilateral divorce raised divorce rates significantly and strongly excerpt

symbiosis of monetary and fiscal policies in a monetary union we consider the interaction between the monetary policy in a monetary union and the separate fiscal policies of the member countries we use a barro gordon type model extended to many countries and fiscal policies each country s fiscal policies inflict externalities on other countries and the common monetary policy has its time consistency problem but if the two types of policymakers agree about the ideal levels of output and inflation then this ideal is attained despite disagreements about the weights of the objectives despite ex post monetary accommodation to fiscal profligacy without fiscal coordination without monetary commitment and for any order of moves

fiscal and monetary rules for a currency union abstract this paper addresses the optimal joint conduct of fiscal and monetary policy in a two country model of a currency union with staggered price setting and distortionary taxes a tractable linear quadratic approximation permits a representation of the optimal policy plan in terms of targeting rules in the optimal equilibrium monetary policy should achieve aggregate price stability following a flexible inflation targeting rule fiscal policy should stabilize idiosyncratic shocks allowing for permanent variations of government debt but should abstain from creating inflationary expectations at the union level simple policy rules can approximate the optimal commitment benchmark through a mix of strict inflation targeting and flexible budget rules conversely the welfare costs of balanced budget rules are at least one order of magnitude higher than conventional estimates of the costs of business cycle fluctuactions

yours mine and ours do divorce laws affect the intertemporal behavior of married couples divorce laws establish spouses individual property rights over household resources and determine when divorce is allowed this paper examines how such laws inuence the intertemporal behavior and the welfare of u s married couples i build a model of household choice about consumption labor supply and divorce under multiple divorce law regimes and i estimate it using exogenous variation in u s divorce laws from the 1970s to the 1990s couples responded to equal division of property and unilateral divorce by increasing tangible assets up to 19 which suggests the presence of a strong income eect for the primary earner and by reducing female employment by over 5 percentage points because the threat of divorce granted additional bargaining power to married woman the bargaining weight of women implied by these responses in the model corresponds to a third of the weight of men this indicates that equal division of assets beneted women when it was

welfare and macroeconomic interdependence we develop a baseline model of monetary and fiscal transmission in interdependent economies the welfare effects of expansionary policies are related to monopolistic supply in production and monopoly power of a country in trade an unanticipated exchange rate depreciation can be beggar thyself rather than beggar thy neighbor as gains in domestic output are offset by deteriorating terms of trade smaller and more open economies are more prone to suffer from inflationary shocks larger economies benefit from moderate demand led expansions but may be worse off if policy makers attempt to close the output gap fiscal shocks are generally beggar thy neighbor in the long run in the short run they raise domestic demand at given terms of trade thus reducing the welfare benefits from monetary expansions analytical tractability makes our model uniquely suitable as a starting point to approach the recent new open economy macroeconomic literature

the economic consequences of absent parents we examine the effects of family structure on economic resources controlling for unobservable family characteristics in the year following a divorce family income falls by 41 percent and family food consumption falls by 18 percent six or more years later the family income of the average child whose parent remains unmarried is 45 percent lower than it would have been if the divorce had not occurred marriage raises the long run family income of children born to single parents by 45 percent these estimates are substantially smaller than the losses that are implied by cross sectional comparisons across family types

interactions of commitment and discretion in monetary and fiscal policies we consider monetary scal interactions when the monetary authority is more conservative than the scal with both policies discretionary 1 nash equilibrium yields lower output and higher price than the ideal points of both authorities 2 of the two leadership possibilities scal leadership is generally better with scal discretion monetary commitment yields the same outcome as discretionary monetary leadership for all realizations of shocks but scal commitment is not similarly negated by monetary discretion second best outcomes require either joint commitment or identical targets for both authorities output socially optimal and price level appropriately conservative or complete separation of tasks jel e61 e63

marriage and divorce changes and their driving forces the family is not a static institution in recent decades marriage rates have fallen divorce rates have risen and the defining characteristics of marriage have changed the economic approach to the family seeks to explain these trends by reference to models that can also explain how and why families form gary becker s 1981 treatise on the family proposed a theory based on production complementarities in which husband and wife specialize in the market and domestic spheres respectively production complementarities also arise in the production and rearing of one s own children however production complementarities at least as initially described are decreasingly central to modern family life increased longevity and declining fertility mean that most of one s adult life is spent without one s own children in the household also the rise in marital formation at older ages including remarriage means that many families form with no intention of producing children moreover increases in female labor force participation suggest that household specialization has either declined or at least taken on a different meaning these changes have come about as what is produced in the home has been dramatically altered both by the emergence of labor saving technology in the home and by the development of service industries that allow much of what was once provided by specialized homemakers to be purchased in the market the availabil

changing the rules midway the impact of granting alimony rights on existing and newly formed partnerships this article analyses the effect of a reform granting alimony rights to cohabiting couples in canada a collective household model with a matching framework predicts that changes in alimony laws would affect existing couples and couples to be differently for existing couples it benefits the intended beneficiary but for couples not yet formed it generates offsetting intra household transfers and lower intra marital allocations for the beneficiary our empirical analyses confirm these predictions among couples united before the reform obtaining the right to petition for alimony led women to lower their labour force participation but not among newly formed cohabiting couples

female labor supply and divorce new evidence from ireland if participation in the labor market helps to secure women s outside options in the case of divorce separation an increase in the perceived risk of marital dissolution may accelerate the increase in female labor supply this simple prediction has been tested in the literature using time and or spatial variation in divorce legislation e g across us states leading to mixed results in this paper we suggest testing this hypothesis by exploiting a more radical policy change i e the legalization of divorce in ireland the right to divorce was introduced in 1996 followed by an acceleration of marriage breakdown rates we use this fundamental change in the irish society as a natural experiment we follow a difference in difference approach using families for whom the dissolution risk is small as a control group our results suggest that the legalization of divorce contributed to a significant increase in female labor supply mostly at the extensive margin results are not driven by selection and are robust to several specification checks including the introduction of household fixed effects and an improved match between control and treatment groups using propensity score reweighting

divorce law reforms and divorce rates in the usa an interactive fixed effects approach this paper estimates the eects of unilateral divorce laws on divorce rates from a panel of state level divorce rates we use the interactive xed eects model to address the issue of endogeneity due to the association between cross state unobserved heterogeneity and divorce law reforms we document that earlier studies in the literature do not fully control for unobserved heterogeneity and result in mixed empirical evidence on the eects of divorce law reforms our results while reconciling these conicting results suggest that divorce law reforms have positive eects on divorce rates but the magnitude and duration of the eects

why has europe become environmentally cleaner decomposing the roles of fiscal trade and environmental policies this paper examines the role of fiscal policy trade and energy taxes on environmental quality in europe using disaggregated data at the monitoring station level for the 12 richest european countries spanning the period from 1995 to 2008 our estimations show that fiscal policies and energy taxes are important determinants of pollution through various mechanisms we find that increasing the share of fiscal spending in gdp and shifting the emphasis towards spending in public goods and against non social subsidies significantly lower the concentrations of sulfur dioxide and ozone but not nitrogen dioxide at the same time energy taxes reduce nitrogen dioxide concentrations but have no effect on ozone and sulfur dioxide finally trade openness has a direct effect on sulfur dioxide but no effect on nitrogen dioxide or ozone our estimates account for time varying unobserved heterogeneity

why have divorce rates fallen the role of women s age at marriage american divorce rates rose from the 1950s to the 1970s peaked around 1980 and have fallen ever since the mean age at marriage also substantially increased after 1970 i explore the extent to which the rise in age at marriage can explain the decrease in divorce rates for cohorts marrying after 1980 using data from the survey of income and program participation 1979 national longitudinal survey of youth and national survey of family growth three different empirical approaches suggest that the increase in women s age at marriage is the main proximate cause of the fall in divorce rates

what determines family structure i introduction the most prevalent type of family structure in which children in the united states are raised today is the traditional one in which both biological parents are present in the home and married but in the past 30 40 years it has become increasingly common for children to experience alternative family structures such as living with the mother with no father present the mother and a stepfather and cohabiting parents children who grow up in a family with married biological parents have better education employment marriage childbearing and psychological outcomes on average than their counterparts who spend substantial parts of childhood living in alternative family structures 1 these differences are generally quite large and dwarf the effects of income and maternal employment the evidence suggests that at least part of the association between family structure and child outcomes is causal there is much still to be learned about the consequences of growing up in alternative family structures but there is a consensus that family structure matters for child development in contrast there is much less known about the determinants of family structure the proximate determinants of family structure are well studied demographic behaviors union formation and dissolution transition from cohabitation to marriage and fertility both in and outside of unions but the implications of adult demographic behaviors for the family structure experiences of children depend crucially on interactions among these behaviors for example the impact on a child of being born out of wedlock is likely to depend on whether the mother and biological father subsequently marry or cohabit and if so how soon after the birth of the child the impact on a child of the dissolution of a union may depend on whether the man in the union was the child s biological father or a stepfather and on the duration of the union economic theories of family formation and dissolution suggest a number of observable factors that affect the demographic behaviors that determine family structure 2 these include the wage rates available to men and women the tax and transfer incentives to cohabit marry and bear children the legal environment governing divorce and child support provided by absent parents and the state of the marriage market many studies have examined the effects of these factors on the family structure experiences of children but most have taken a narrow approach for example a typical study examines the impact of changes over time in one or two determinants of family structure without considering the implications of simultaneous changes in other factors most studies examine only one or two of the key demographic behaviors that determine the family structure experienced by children for example one study might focus only on entry to cohabitation and marriage whereas another study examines childbearing while single and a third study analyzes marital dissolution in this article we propose a new approach to analyze the determinants of the family structure experiences of children our approach has four distinguishing features first we jointly model union formation union dissolution and childbearing decisions previous analyses have integrated some of these behaviors in a single model but none has integrated the full range of behaviors needed for a thorough analysis of family structure a major feature of change in recent years has been de linking of marriage and childbearing decisions hence it is crucial to recognize as emphasized by ellwood and jencks 2004 that marriage and childbearing are in fact distinct decisions and that treating single parenthood as one decision rather than the consequence of related but distinct union and childbearing decisions misses key elements of changes in behavior furthermore bumpass and lu 2000 point out that a substantial part of the increase in single parenthood in the last three decades can be accounted for by a rise in the presence of children with cohabiting parents but child outcomes are worse in cohabitation than marriage other things equal

on the relevance of exchange rate regimes for stabilization policy this paper assesses the relevance of the exchange rate regime for stabilization policy using both fiscal and monetary policy we conclude that the exchange rate regime is irrelevant this is the case independently of the severity of price rigidities independently of asymmetries across countries in shocks and transmission mechanisms the only relevant conditions are on the mobility of labor and financial assets the results can be summarized with the claim that every currency area is an optimal currency area however with labor mobility or tradable state contingent assets additional policy instruments would be required to establish the irrelevance result

alimony rights and intrahousehold allocation of resources evidence from brazil can family policy affect well being of individuals without altering the resources available to their families this article examines the extension of alimony rights and obligations to cohabiting couples in brazil for women in intact relationships alimony rights upon dissolution should improve outside options strengthening their negotiating positions and increasing their influence over intrahousehold allocation of resources robust econometric evidence indicates that more decision power in the hands of women impacts hours worked by female adults and investments in the education of children this suggests that family policy and models of family decision making should take intrahousehold heterogeneity of preferences into account

goods prices and exchange rates what have we learned import prices typically change by a smaller proportion than the exchange rate between the exporting and importing country recent research indicates that common currency relative prices for similar goods exported to different markets are highly correlated with exchange rates between those markets this evidence suggests that incomplete pass through is a consequence of third degree price discrimination while distance matters for market segmentation borders have independent effects the source of the border effect has not been clearly identified furthermore there is little evidence yet to suggest substantial market power is implied by the observed price discrimination

incomplete pass through and the welfare effects of exchange rate variability abstract this paper considers the implications of incomplete exchange rate pass through for optimal monetary and exchange rate policy a two country model is presented which allows an explicit derivation of welfare functions in terms of a weighted sum of the second moments of producer prices and the nominal exchange rate from a single country perspective the optimal exchange rate variance depends on the degree of pass through the size and openness of the economy the elasticity of labour supply and the volatility of foreign producer prices welfare may be decreasing or increasing in the volatility of the exchange rate

international dimensions of optimal monetary policy abstract this paper provides a baseline general equilibrium model of optimal monetary policy among interdependent economies with monopolistic firms and nominal rigidities an inward looking policy of domestic price stabilization is not optimal when firms markups are exposed to currency fluctuations such a policy raises exchange rate volatility leading foreign exporters to charge higher prices vis a vis increased uncertainty in the export market as higher import prices reduce the purchasing power of domestic consumers optimal monetary rules trade off a larger domestic output gap against lower consumer prices optimal rules in a world nash equilibrium lead to less exchange rate volatility relative to both inward looking rules and discretionary policies even when the latter do not suffer from any inflationary or deflationary bias gains from international monetary cooperation are related in a non monotonic way to the degree of exchange rate pass through

does child support enforcement reduce divorce rates a reexamination during the 1990s expenditures on child support enforcement increased dramatically as did the amount of money collected in these efforts this paper examines whether there is a link between the child support enforcement program and the divorce behavior of married couples with children previous work notably that of nixon 1997 found a significant negative effect of child support enforcement policy on the probability of divorce however using a panel of state divorce rates and policy variables i find that contrary to this previous study child support enforcement policy has no significant impact on divorce rates

europe and central asia s great post communist social health insurance experiment aggregate impacts on health sector outcomes abstract the post communist transition to social health insurance in many of the central and eastern european and central asian countries provides a unique opportunity to try to answer some of the unresolved issues in the debate over the relative merits of social health insurance and tax financed health systems this paper employs regression based generalizations of the difference in differences method on panel data from 28 countries for the period 1990 2004 we find that controlling for any concurrent provider payment reforms adoption of social health insurance increased national health spending and hospital activity rates but did not lead to better health outcomes

frequency of price adjustment and pass through we empirically document using u s import prices that on average goods with a high frequency of price adjustment have a long run pass through that is at least twice as high as that of low frequency adjusters we show theoretically that this relationship should follow because variable mark ups that reduce long run pass through also reduces the curvature of the proflt function when expressed as a function of the cost shocks making the flrm less willing to adjust its price lastly we quantitatively evaluate a dynamic menu cost model and show that the variable mark up channel can generate signiflcant variation in frequency equivalent to 37 of the observed variation in the data on the other hand the standard workhorse model with constant elasticity of demand and calvo or state dependent pricing has di culty matching the facts

stakes and welfare in rent seeking contests using a public policy application oftullock s two player rent seeking contest this paper focuses on the relationshipbetween the aggregate expected utility ofthe players and their asymmetricvaluations in our game these valuationsare the players payoffs in the twopossible states of nature namely theapproval and rejection of the proposedpublic policy our main result provides thecondition that ensures that the aggregateexpected payoff of the two contestants theinterest groups that compete on theapproval of the proposed policy is positively related to the valuationparameters

the economics of the marriage contract theories and evidence abstract we analyze the role of the marriage contract we first formalize three prominent hypotheses on why people marry marriage provides an exogenous payoff to married partners it serves as a commitment device and it serves as a signaling device for each theory we analyze how a reduction in the costs of divorce affects the propensity to divorce for couples at any given duration of marriage we then use individual marriage and divorce certificate data from the united states to bring these alternative views of the marriage contract to bear on the data we exploit variations in the timing of the adoption of unilateral divorce laws across states to proxy a one off and permanent reduction in divorce costs the results suggest that the dominant reason that couples enter into a marriage contract is that it serves as a commitment device

unilateral divorce versus child custody and child support in the u s this paper explores the response of the divorce rate to law reforms introducing unilateral divorce after controlling for law reforms concerning the aftermath of divorce which are omitted from most previous studies we introduce two main policy changes that have swept the us since the late 1970s the approval of the joint custody regime and the child support enforcement program because those reforms affect divorce decisions by counteracting the reallocation of property rights generated by the unilateral divorce procedure and by increasing the expected financial costs of divorce it is arguable that their omissions might obscure the impact of unilateral divorce reforms on divorce rates after allowing for changes in laws concerning the aftermath of divorce we find that the positive impact of unilateral divorce reforms on divorce rates does not vanish over time suggesting that the coase theorem may not apply to changes in divorce laws supplemental analysis developed to examine the frequency of permanent shocks in us divorce rates indicates that the positive permanent changes in divorce rates can be associated with the implementation of unilateral divorce reforms and that the negative permanent changes can be related to the law reforms concerning living arrangements in the aftermath of divorce this seems to confirm the important role of these policies in the evolution of divorce rates