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Application of the Coase Theorem to marital bargaining suggests that shifting from a consent divorce regime to no-fault unilateral divorce laws should not affect divorce rates. Each iteration of the empirical literature examining the evolution of divorce rates across US states has yielded different conclusions about the effects of divorce law liberalization. I show that these results reflect a failure to explicitly model the dynamic response of divorce rates to a shock to the policy regime.doi:10.3386/w10014 fatcat:wf57y446cnglbkrdzq3a3obc7i