EconPapers    
Economics at your fingertips  
 

Latent indices in assortative matching models

William Diamond and Nikhil Agarwal

Quantitative Economics, 2017, vol. 8, issue 3, 685-728

Abstract: A large class of two‐sided matching models that include both transferable and non‐transferable utility result in positive assortative matching along a latent index. Data from matching markets, however, may not exhibit perfect assortativity due to the presence of unobserved characteristics. This paper studies the identification and estimation of such models. We show that the distribution of the latent index is not identified when data from one‐to‐one matches are observed. Remarkably, the model is nonparametrically identified using data in a single large market when each agent on one side has at least two matched partners. The additional empirical content in many‐to‐one matches is demonstrated using simulations and stylized examples. We then derive asymptotic properties of a minimum distance estimator as the size of the market increases, allowing estimation using dependent data from a single large matching market. The nature of the dependence requires modification of existing empirical process techniques to obtain a limit theorem.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:quante:v:8:y:2017:i:3:p:685-728

Ordering information: This journal article can be ordered from
https://www.econometricsociety.org/membership

Access Statistics for this article

More articles in Quantitative Economics from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-03-31
Handle: RePEc:wly:quante:v:8:y:2017:i:3:p:685-728