During the Great Recession of 2007-2009, popular media reported that tough financial times were strengthening marriages and decreasing the risk of divorce. Several recent studies using vital statistics have found empirical evidence supporting this, labeling the effect the, “cost of divorce perspective.” Using new data on marital history provided by the American Community Survey and census-tract level unemployment, this study further analyzes the relationship between recessions and an individual’s decision to divorce. Results show that unemployment rates do not influence divorce risks, regardless of differences in gender. Moreover, evidence for a hybrid perspective on divorce is found, suggesting that individuals postpone divorce during recessions, but then end their marriages when the health of the economy improves.
This thesis explores what economic factors had the greatest affects on the early 1990s commercial real estate recession and the current commercial real estate recession. Equity Real Estate Investment Trusts (REITs) are used as the measure of the commercial real estate market. The Hypothesis states that because of the fundamental differences between the two recessions, the influential factors will also be different. Through the use of an ordinary least squares regression, the hypothesis is tested using a series of asset pricing explanatory variables. The findings suggest that the hypothesis was correct and the two recessions are influenced by different explanatory variables.