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Comparative Static and Computational Methods for an Empirical One-to-one Transferable Utility Matching Model

In: Structural Econometric Models

Author

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  • Bryan S. Graham

Abstract

I show that the equilibrium distribution of matches associated with the empirical transferable utility one-to-one matching (TUM) model introduced byChoo and Siow (2006a,2006b)corresponds to the fixed point of system ofK+Lnonlinear equations; withKandLrespectively 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.

Suggested Citation

  • Bryan S. Graham, 2013. "Comparative Static and Computational Methods for an Empirical One-to-one Transferable Utility Matching Model," Advances in Econometrics, in: Structural Econometric Models, volume 31, pages 153-181, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aecozz:s0731-9053(2013)0000032006
    DOI: 10.1108/S0731-9053(2013)0000032006
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    More about this item

    Keywords

    Transferable Utility Matching (TUM); Choo–Siow Model; matching equilibrium; comparative statics; C62; C68; C78;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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