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Discussion Papers

Title: Estimating Separable Matching Models
Author(s): Galichon, Alfred ; Salanie, Bernard
Academic Year: 2021-2022
Abstract

Most recent empirical applications of matching with transferable utility have imposed a natural restriction: that the joint surplus be separable in the sources of unobserved heterogeneity. We propose here two simple methods to estimate models in this class. The first method is a minimum distance estimator that relies on the generalized entropy of matching introduced in Galichon and Salanie (2022). The second applies to the more special but popular Choo and Siow (2006) model, which it reformulates as a generalized linear model with two-way fixed effects. Both methods are easy to apply and perform very well.

Fields: econometrics, labor economics
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1022 International Affairs Building (IAB)

Mail Code 3308

420 West 118th Street

New York, NY 10027

Ph: (212) 854-3680
Fax: (212) 854-0749
Business Hours:
Mon–Fri, 9:00 a.m.–5:00 p.m.
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