Applying the Economic Model of Crime to Child Support Enforcement: A Theoretical and Empirical Analysis

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Abstract
Child support noncompliance affects both the family and the taxpaper. This paper models the decision to pay based on expected utility maximization. The amount unpaid is determined jointly with the expected enforcement probability. A two-stage estimation technique requiring OLS and probit is used. We improve upon previous problems with measurement error and sex-restricted data in deterrence and child support studies, the treatment of endogeneous deterrence variables as exogenous, and the use of aggregate data. We find a joint relationship between the amount unpaid and the enforcement probability. Policies are suggested for increasing compliance and payment to the family.

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