Estimating separable matching models

B-Tier
Journal: Journal of Applied Econometrics
Year: 2024
Volume: 39
Issue: 6
Pages: 1021-1044

Authors (2)

Alfred Galichon (not in RePEc) Bernard Salanié (Columbia University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Most recent empirical applications of matching with transferable utility have imposed a natural restriction: that the joint surplus be separable in the sources of unobserved heterogeneity. We propose here two simple methods to estimate models in this class. The first method is a minimum distance estimator that relies on the generalized entropy of matching. The second applies to the more special but popular Choo and Siow model, which reformulates as a generalized linear model with two‐way fixed effects. Neither method requires solving for the stable matching. Both methods are easy to apply and perform very well.

Technical Details

RePEc Handle
repec:wly:japmet:v:39:y:2024:i:6:p:1021-1044
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-29