Abstract

Looking at the law and economics of the family through the eyes of the Austrian school helps us to see two key points of analysis that other approaches might overlook. First, Austrians understand the role played by the law as a node of social coordination in a world of uncertainty. Second, the Austrian understanding of capital, including human capital, sheds light on what makes for a sustainable marital partnership and provides a way of describing in more detail the nature of the coordination problem marriage involves. To the degree that the law facilitates rather than complicates the creation of complementary human capital structures between marital partners, it will contribute to better marriages and fewer divorces.