Question: Dear Tutor, please choose the right answers only without explanation. Thank you. a) Consider sharing of income risk as a gain from marriage. Assume that
Dear Tutor, please choose the right answers only without explanation. Thank you.
a)



Consider sharing of income risk as a gain from marriage. Assume that individual incomes Y are drawn from a continuous uniform distribution. Riskaverse individuals prefer a marriage where the individual incomes of spouses are perfectly negatively correlated. Couples that marry at a higher age are less likely to divorce. In the twosided search model by Burdett 35 Coles (1990) mar riage classes converge to a straight line when arrival rates of potential spouses when searching become unbounded large} so that marriage market allocations approach the Gale Shapley al location when search frictions do not exist
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