I show that the equilibrium distribution of matches associated with the empirical transferable utility one-to-one matching (TUM) model introduced by Choo and Siow (2006a, 2006b) corresponds to the fixed point of system of nonlinear equations; with and respectively equal to the number of discrete types of women and men. I use this representation to derive new comparative static results, showing how the match distribution varies with match surplus and the marginal distributions of agent types.
I would like to thank Gary Chamberlain, Eugene Choo, Alfred Galichon, Michael Jansson, Konrad Menzel, Ariel Pakes, and numerous participants in the 2013 Advances in Econometrics Conference at Louisiana State University and a seminar at Harvard-MIT for helpful discussions. A special thanks to Gary Chamberlain, Eugene Choo, and Alfred Galichon for written feedback on an earlier draft. All the usual disclaimers apply.
Graham, B.S. (2013), "Comparative Static and Computational Methods for an Empirical One-to-one Transferable Utility Matching Model", Structural Econometric Models (Advances in Econometrics, Vol. 31), Emerald Group Publishing Limited, pp. 153-181. https://doi.org/10.1108/S0731-9053(2013)0000032006Download as .RIS
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