Stable marriage, household consumption and unobserved match quality

Martin Browning, Laurens Cherchye, Thomas Demuynck, Bram De Rock and Frederic Vermeulen

No W21/31, IFS Working Papers from Institute for Fiscal Studies

Abstract: We present a methodology for the structural empirical analysis of household consumption and time use behaviour under marital stability. Our approach is of the revealed preference type and non-parametric, meaning that it does not require a prior functional speci?cation of individual utilities. Without making use of the transferable utility assumption, but still allowing for monetary transfers, our method can identify individuals’ unobserved match qualities and quantify them in money metric terms. We can include both preference factors, a?ecting individuals’ preferences over private and public goods, and match quality factors, driving di?erences in unobserved match quality. We demonstrate the practical usefulness of our methodology through an application to the Belgian MEqIn data. Our results reveal intuitive patterns of unobserved match quality that allow us to rationalise both the observed matches and the within-household allocations of time and money.

Date: 2021-10-05
New Economics Papers: this item is included in nep-his and nep-upt
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Related works:
Working Paper: Stable marriage, household consumption and unobserved match quality (2021)
Working Paper: Stable Marriage, Household Consumption and Unobserved Match Quality (2021)
Working Paper: Stable marriage, household consumption and unobserved match quality (2021)
Working Paper: Stable Marriage, Household Consumption and Unobserved Match Quality (2021)
Working Paper: Stable marriage, household consumption and unobserved match quality (2021)
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