Costly Concessions: An Empirical Framework for Matching with Imperfectly Transferable Utility

S-Tier
Journal: Journal of Political Economy
Year: 2019
Volume: 127
Issue: 6
Pages: 2875 - 2925

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

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

Abstract

We introduce an empirical framework for models of matching with imperfectly transferable utility and unobserved heterogeneity in tastes. Our framework allows us to characterize matching equilibrium in a flexible way that includes as special cases fully and nontransferable utility models, collective models, and settings with taxes on transfers. We allow for the introduction of a general class of additive unobserved heterogeneity on agents' preferences. We show existence and uniqueness of an equilibrium under minimal assumptions. We provide two algorithms to compute the equilibrium in our model. We then show that the associated log likelihood has a simple expression and compute its derivatives. An empirical illustration is provided in the appendix.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/702020
Journal Field
General
Author Count
3
Added to Database
2026-01-25