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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.
Source: “Inflation and other aggregate determinants of the trend in US divorce rates since the 1960s” from Applied Economics, Volume 42, Issue 26 October 2010 , pages 3367 – 3381
I recommend Po Bronson’s book, Why Do I Love These People?
And if you’re curious whether you’re headed for a divorce, ask Visa.
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