ECONOMIC GROWTH CENTER
                                
                        YALE UNIVERSITY
                                
                                
                                
                        P.O. Box 208269
               New Haven, Connecticut 06520-8269
                                
                                
                                
                                
                CENTER DISCUSSION PAPER NO. 807
                                
                                
                                
                                
       VISITATIONS AND TRANSFERS IN NON INTACT HOUSEHOLDS
                                
                                
                                
                        Daniela Del Boca
                  University of Turin and NYU
                                
                          Rocio Ribero
            University of los Andes Yale University
                                
                                
                                
                                
                                
                          October 1999







Note: Center Discussion Papers are preliminary materials circulated to stimulate discussions and
      critical comments.



Abstract

Recent research reveals a negative impact of divorce on children's welfare as a consequence of the
reduction in monetary and time contributions by the non-custodian parent.  When the custody
arrangement is sole custody, the variables that link the absent parent to the child are visitations and
child support transfers.  We explain visitations and child support transfers using a behavioral model
of competitive equilibrium in which both variables are the results of competitive allocations realized
in a decentralized non-cooperative manner.

In our framework the mother has control over visitations and the father has control over child
support.  Estimates of the model are used to simulate the effects of alternative endowment levels on
the proportion of time spent with the noncustodial parent and the ex-post parental income
distribution.  Our results show that a more equal allocation of time with the child, though beneficial
to the children, may have a negative effect for the mother's welfare, increasing the income gap
between ex-spouses.



Kay Words: Divorce, Visitations, Child support transfers.