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Motivated by how child support costs are divided between parents in Michigan and Arizona, we define the child support cost sharing problem. Monetary support from each parent is transferred between… Click to show full abstract
Motivated by how child support costs are divided between parents in Michigan and Arizona, we define the child support cost sharing problem. Monetary support from each parent is transferred between the two parents according to an adjustment function that is based on the amount of time the child spends with the parents. We introduce eight interrelated axioms that a child support adjustment function should satisfy, providing two characterizations of the functional form of adjustment functions. We examine the rules used in Arizona, Michigan, Oregon, and California in light of the axioms.
Journal Title: Economics Letters
Year Published: 2020
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