Pierre André Chiappori (Columbia) "Family Economics" - Cemmap

276 6. Uncertainty and Dynamics in the Collective model
Formally, it is easy to check that the divorce decision is monotonic in³ the θ’s,
in the sense that if a couple remains married for some realization ¯θ a
, ¯b θ ´
,
³
then they also do for any θ a ,θ b´
such that θ i ≥ ¯θ i , i = a, b; and conversely,
³
if they divorce for some ¯θ a
, ¯b θ ´
³
,sodotheyforanyθ
a ,θ b´
such that θ i ≤
¯θ i , i = a, b. In general, there exists a divorce frontier, namely a decreasing
function φ such that the coupe divorce if and only if θ a ³