Complementarity and Aggregate Implications of Assortative Matching: A Nonparametric Analysis
This paper presents methods for evaluating the effects of reallocating an indivisible input across production units, taking into account resource constraints by keeping the marginal distribution of the input fixed. When the production technology is nonseparable, such reallocations, although leaving the marginal distribution of the reallocated input unchanged by construction, may nonetheless alter average output. Examples include reallocations of teachers across classrooms composed of students of varying mean ability. We focus on the effects of reallocating one input, while holding the assignment of another, potentially complementary, input fixed. We introduce a class of such reallocations -- correlated matching rules -- that includes the status quo allocation, a random allocation, and both the perfect positive and negative assortative matching allocations as special cases. We also characterize the effects of local (relative to the status quo) reallocations. For estimation we use a two-step approach. In the first step we nonparametrically estimate the production function. In the second step we average the estimated production function over the distribution of inputs induced by the new assignment rule. These methods build upon the partial mean literature, but require extensions involving boundary issues. We derive the large sample properties of our proposed estimators and assess their small sample properties via a limited set of Monte Carlo experiments.
|Date of creation:||Apr 2009|
|Publication status:||published as Bryan S. Graham & Guido W. Imbens & Geert Ridder, 2014. "Complementarity and aggregate implications of assortative matching: A nonparametric analysis," Quantitative Economics, Econometric Society, vol. 5, pages 29-66, 03.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Susan Athey & Guido W. Imbens, 2006.
"Identification and Inference in Nonlinear Difference-in-Differences Models,"
Econometric Society, vol. 74(2), pages 431-497, 03.
- Susan Athey & Guido W. Imbens, 2002. "Identification and Inference in Nonlinear Difference-In-Differences Models," NBER Technical Working Papers 0280, National Bureau of Economic Research, Inc.
- Susan Athey & Guido Imbens, 2003. "Identification and Inference in Nonlinear Difference-in-Differences Models," Levine's Working Paper Archive 506439000000000079, David K. Levine.
- Angrist, Joshua D. & Krueger, Alan B., 1999.
"Empirical strategies in labor economics,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366
- Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working papers 98-7, Massachusetts Institute of Technology (MIT), Department of Economics.
- Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working Papers 780, Princeton University, Department of Economics, Industrial Relations Section..
- Charles F. Manski, 2004.
"Statistical Treatment Rules for Heterogeneous Populations,"
Econometric Society, vol. 72(4), pages 1221-1246, 07.
- Charles F. Manski, 2003. "Statistical treatment rules for heterogeneous populations," CeMMAP working papers CWP03/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- James J. Heckman & Jeffrey Smith & Nancy Clements, 1997. "Making The Most Out Of Programme Evaluations and Social Experiments: Accounting For Heterogeneity in Programme Impacts," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 487-535.
- Keisuke Hirano & Jack R. Porter, 2009.
"Asymptotics for Statistical Treatment Rules,"
Econometric Society, vol. 77(5), pages 1683-1701, 09.
- Bhattacharya, Debopam, 2009. "Inferring Optimal Peer Assignment From Experimental Data," Journal of the American Statistical Association, American Statistical Association, vol. 104(486), pages 486-500.
- William A. Brock & Steven N. Durlauf, 2000.
00-05-028, Santa Fe Institute.
- Bruce Sacerdote, 2000.
"Peer Effects with Random Assignment: Results for Dartmouth Roommates,"
NBER Working Papers
7469, National Bureau of Economic Research, Inc.
- Bruce Sacerdote, 2001. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 681-704.
- Patrick Legros & Andrew F. Newman, 2003.
"Beauty is a Beast, Frog is a Prince: Assortative Matching with Nontransferabilities,"
Economics Working Papers
0030, Institute for Advanced Study, School of Social Science.
- Patrick Legros & Andrew F. Newman, 2007. "Beauty Is a Beast, Frog Is a Prince: Assortative Matching with Nontransferabilities," Econometrica, Econometric Society, vol. 75(4), pages 1073-1102, 07.
- Patrick Legros & Andrew F. Newman, 2002. "Beauty is a Beast, Frog is a Prince: Assortative Matching with Nontransferabilities," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-149, Boston University - Department of Economics, revised Nov 2004.
- Newey, Whitney K., 1994.
"Kernel Estimation of Partial Means and a General Variance Estimator,"
Cambridge University Press, vol. 10(02), pages 1-21, June.
- Newey, W.K., 1992. "Kernel Estimation of Partial Means and a General Variance Estimator," Working papers 93-3, Massachusetts Institute of Technology (MIT), Department of Economics.
- Haerdle,Wolfgang & Stoker,Thomas, 1987. "Investigations smooth multiple regression by the method of average derivatives," Discussion Paper Serie A 107, University of Bonn, Germany.
- Card, David & Krueger, Alan B, 1992.
"Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States,"
Journal of Political Economy,
University of Chicago Press, vol. 100(1), pages 1-40, February.
- David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," NBER Working Papers 3358, National Bureau of Economic Research, Inc.
- Charles F. Manski, 1993.
"Identification of Endogenous Social Effects: The Reflection Problem,"
Review of Economic Studies,
Oxford University Press, vol. 60(3), pages 531-542.
- Manski, C.F., 1991. "Identification of Endogenous Social Effects: the Reflection Problem," Working papers 9127, Wisconsin Madison - Social Systems.
- Susan Athey & Scott Stern, 1998. "An Empirical Framework for Testing Theories About Complimentarity in Organizational Design," NBER Working Papers 6600, National Bureau of Economic Research, Inc.
- Bryan S. Graham, 2008. "Identifying Social Interactions Through Conditional Variance Restrictions," Econometrica, Econometric Society, vol. 76(3), pages 643-660, 05.
- Powell, James L & Stock, James H & Stoker, Thomas M, 1989. "Semiparametric Estimation of Index Coefficients," Econometrica, Econometric Society, vol. 57(6), pages 1403-1430, November.
- Manski, C.F., 1989.
"Nonparametric Bounds On Treatment Effects,"
8909, Wisconsin Madison - Social Systems.
- Rajeev Dehejia, 1999.
"Program Evaluation as a Decision Problem,"
NBER Working Papers
6954, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:14860. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.