IDEAS home Printed from https://ideas.repec.org/p/red/sed019/796.html
   My bibliography  Save this paper

Dynamic frictionless marriage matching: commitment and household behaviour

Author

Listed:
  • George-Levi Gayle

    (Washington Unversity in St. Louis)

Abstract

This paper developed a lifecycle frictionless equilibrium matching of the marriage market with endogenous divorce, remarriage, time allocation, and human capital accumulation in an imperfectly transferrable utility setting. Allocation of resources with the household is characterized by a constrained Pareto problem under two different protocols. The first is characterized by one period commitment (i.e. households renegotiate consumption and time allocation plans every period) and Nash bargaining with divorce as the treat point. The second, is characterized by limit commitment enforced by a participation constraint, with renegotiation taking place only when a member of the household’s participation constraint is violation. The paper provides sufficient conditions for existence and uniqueness of equilibrium. The paper explores identification and estimation of the class of models developed. Estimating the class of models on data from the American Community Survey (ACS) and the Panel Study of Income Dynamic(PSID). Preliminary results show that frictionless dynamic matching models are able to reproduce the joint life-cycle dynamics of time allocation, marriage, divorce, and remarriage.

Suggested Citation

  • George-Levi Gayle, 2019. "Dynamic frictionless marriage matching: commitment and household behaviour," 2019 Meeting Papers 796, Society for Economic Dynamics.
    • Handle: RePEc:red:sed019:796
    as

    Download full text from publisher

    File URL: https://red-files-public.s3.amazonaws.com/meetpapers/2019/paper_796.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:red:sed019:796. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Zimmermann (email available below). General contact details of provider: https://edirc.repec.org/data/sedddea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.