Inflation and other aggregate determinants of the trend in US divorce rates since the 1960s
Author: Nunley, J. M.
Source: Applied Economics, Volume 42, Number 26, October 2010 , pp. 3367-3381(15)
Abstract:This article extends empirical research on the determinants of divorce in two ways. First, I examine the effect of inflation on divorce. Second, the use of a structural time-series modelling approach attributes unobservables and omitted variables to an unobserved component, which allows for the model's parameters to be estimated consistently. Inflation is statistically significant, positive and persistent. I show that the effects of inflation are robust to the inclusion of additional explanatory variables and various trend specifications. The long-run implications of inflation are also substantial. I conclude that price stability has the potential to reduce divorce rates.
Document Type: Research article
Publication date: 2010-10-01