Identification and Efficiency Bounds for the Average Match Function under Conditionally Exogenous Matching

Bryan Graham, Guido Imbens and Geert Ridder ()

No 22098, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Consider two heterogenous populations of agents who, when matched, jointly produce an output, `Y`. For example, teachers and classrooms of students together produce achievement, parents raise children, whose life outcomes vary in adulthood, assembly plant managers and workers produce a certain number of cars per month, and lieutenants and their platoons vary in unit effectiveness. Let `W\in\mathbb{W}={ w_1,\ldots,w_j} and X\in\mathbb{X}={ x_1,\ldots,x_k}` denote agent types in the two populations. Consider the following matching mechanism: take a random draw from the `W=w_j` subgroup of the first population and match her with an independent random draw from the `X=x_k` subgroup of the second population. Let `beta(w_j,x_k)`, the average match function (AMF), denote the expected output associated with this match. We show that (i) the AMF is identified when matching is conditionally exogenous, (ii) conditionally exogenous matching is compatible with a pairwise stable aggregate matching equilibrium under specific informational assumptions, and (iii) we calculate the AMF's semiparametric efficiency bound.

JEL-codes: C1 C31 D85 (search for similar items in EconPapers)
Date: 2016-03
Note: ED IO LS TWP
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Published as Bryan S. Graham & Guido W. Imbens & Geert Ridder, 2020. "Identification and Efficiency Bounds for the Average Match Function Under Conditionally Exogenous Matching," Journal of Business & Economic Statistics, vol 38(2), pages 303-316.

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Working Paper: Identification and efficiency bounds for the average match function under conditionally exogenous matching (2016)
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